Can Binance Founder Help Pakistan Become a Crypto Power?
Islamabad, Pakistan – In a groundbreaking move for the nation’s fledgling cryptocurrency sector, Changpeng Zhao, the founder of Binance, the world’s largest cryptocurrency exchange, has been appointed as a strategic adviser to Pakistan’s newly formed regulatory body, the Pakistan Crypto Council (PCC). This initiative marks a significant shift in the country’s approach toward digital finance and seeks to position Pakistan as a potential player in the global cryptocurrency landscape.
A New Era for Cryptocurrency in Pakistan
On April 10, 2025, Zhao signed on to provide advisory services to the PCC, an organization established in March by Prime Minister Shehbaz Sharif’s government as part of a broader strategy to embrace technological innovation and create a regulatory framework that ensures investor protection. Finance Minister Muhammad Aurangzeb heralded Zhao’s appointment as a “landmark moment” and a clear message that Pakistan is open to innovative financial solutions.
Zhao’s influence in the global crypto community is substantial, despite his recent legal troubles in the United States, where he served a four-month sentence for violating anti-money laundering laws. His expertise is deemed invaluable as Pakistan seeks to develop a “competitive crypto ecosystem,” focusing on policies surrounding regulation, infrastructure, education, and overall adoption.
Unpacking the Potential in Pakistan
Pakistan, with a population exceeding 240 million people—60% of whom are under the age of 30—presents a substantial market for cryptocurrency. Zhao noted this opportunity, asserting that the potential for growth in this sector is “limitless.” The government views this development as critical not only for attracting foreign investment but also for integrating cryptocurrency into the national financial framework.
Bilal bin Saqib, newly appointed chief adviser to the finance minister, echoed these sentiments. He highlighted that an estimated 15 to 20 million Pakistanis are already engaged in cryptocurrency trading, and that the nation witnesses billions of dollars in crypto transactions annually. This reality has prompted the desire for a legal and regulated framework to promote growth in the sector.
Regulatory Backdrop and International Influences
The formation of the PCC and the engagement with Zhao reflect a notable reversal from Pakistan’s previous stance on cryptocurrencies. The State Bank of Pakistan (SBP) had prohibited financial institutions from facilitating crypto transactions as early as 2018 due to concerns about financial security and money laundering. However, with increasing global acceptance of cryptocurrencies and changing attitudes—particularly influenced by U.S. President Donald Trump’s evolving policies—Pakistan is recalibrating its approach to digital currencies.
Saqib acknowledged that countries worldwide are reassessing their regulatory stances on cryptocurrencies, noting Trump’s shift in policy as a pivotal factor driving this change. The subsequent U.S. executive orders aimed at regulating digital currencies further exemplify a trend that Pakistan aims to follow.
Challenges Ahead
Despite growing interest in cryptocurrency regulation, the path forward is fraught with complexities. Critics, including finance experts like Ibrahim Khalil, caution that Pakistan’s focus on promoting cryptocurrencies may overshadow essential discussions about their utility. Khalil argues that without a clear understanding of what problems cryptocurrencies solve, the nation’s push could be misplaced.
Furthermore, challenges related to Pakistan’s digital infrastructure, including slow internet speeds and erratic electricity supplies, pose significant barriers to successful cryptocurrency adoption. Experts argue that without substantial improvements in these areas, efforts to establish a robust cryptocurrency market may falter.
The Road to Regulation and Infrastructure Improvement
There is consensus among observers that Pakistan’s approach to regulating cryptocurrency must prioritize responsible practices and investor protection. This includes establishing clear guidelines for Know Your Customer (KYC) processes, anti-money laundering (AML) policies, and stringent taxation measures for those involved in crypto transactions.
As the Pakistan Crypto Council continues its work, the nation stands at a crossroads; it must weigh the desire for innovation against the need for stringent regulation and oversight. With Changpeng Zhao’s involvement, Pakistan hopes to not only secure its position in the global cryptocurrency market but also to harness the potential of digital finance to improve the economic landscape of the country.
As Pakistan embarks on this new chapter, its success will ultimately depend on how well it navigates these challenges and capitalizes on its opportunities in the burgeoning world of cryptocurrencies.
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