Binance CEO, Pakistani leadership discuss expanding cooperation
In a landmark meeting, Binance CEO Richard
Teng met with Pakistan’s top financial leadership, marking a pivotal
moment in the country’s evolving stance on digital finance. The high-level
discussions, co-chaired by Finance Minister
Senator Muhammad Aurangzeb and Pakistan
Virtual Assets Regulatory Authority (PVARA) Chairman Bilal Bin
Saqib, centered on a proposed “time-bound amnesty” initiative aimed at
integrating Pakistan's vast, unregulated cryptocurrency market into the formal
economy.
The consultative session, hosted by Pakistan’s
Finance Division, also brought together the Governor of the State Bank of Pakistan
(SBP), presidents of major Pakistani commercial banks, and other key
stakeholders to discuss the country's National Digital Asset Framework.
Binance’s $5 Billion
Opportunity: Turning 'Dead Capital' into Growth
Richard Teng, leading a delegation from Binance, revealed some staggering statistics during the meeting: approximately 17.5 million Pakistanis are registered on the Binance platform, collectively holding $5 billion in virtual assets. However, this capital remains outside Pakistan’s formal financial system, contributing to what is effectively “dead capital” with no direct impact on the country's economy or tax base.
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To address this, the government has proposed a
“time-bound amnesty” scheme designed to encourage individuals to declare their
hidden crypto assets. In exchange, users would likely need to transfer their
holdings to exchanges regulated by PVARA. Officials hope that this integration
will allow virtual assets to be treated as part of Pakistan’s liquid money
supply (M-1), potentially unlocking billions in capital. Binance executives
believe this could spur local economic investment, with users converting crypto
into Pakistani Rupees.
Bridging the
Gap: Binance & Local Banks
The meeting also marked a significant shift in
the relationship between Pakistan’s banks and cryptocurrency. For years,
Pakistani banks have blocked crypto transactions due to concerns about
compliance and regulation. However, Binance executives reassured local banking
leaders that modern blockchain technology allows for real-time traceability of
crypto transactions, making it easier for banks to lend against these verified
digital assets.
By incorporating stablecoins and digital
assets into the financial ecosystem, the country could attract billions in US
dollar inflows, potentially boosting Pakistan’s GDP.
Expanding the
Agenda: Key Discussions
In addition to the amnesty scheme, several
other major topics were addressed, including:
·
Sovereign
Debt Tokenization: The proposal to convert government bonds into
digital tokens to enhance liquidity and expand investor access.
·
Talent
Development: Initiatives aimed at building a local workforce skilled
in Web3 technologies, creating high-value jobs for the youth.
·
Taxation
Framework: Designing a gradual capital gains tax structure to
stabilize the crypto market.
Revolutionizing
Remittances
As the policy discussions continue, technical innovation is already making strides. Hassan Baig, Chairman of the Stacks Asia Foundation, announced that his organization is on the verge of testing Pakistan’s first-ever cross-border payment using cryptocurrency rails with a major financial institution. This pilot project, slated to launch within three weeks, aims to transform remittance flows — a vital economic lifeline for Pakistan — by enabling transactions in under 50 seconds at a cost below 0.5%. Crucially, Baig emphasized that local banks would maintain liquidity onshore to ensure the integrity of Pakistan’s economy.
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The Regulatory Path Forward
The legal foundation for these developments is
already set, with the establishment of PVARA through Ordinance No. VII of 2025,
which was enacted on July 8. PVARA is tasked with regulating and licensing the
digital asset sector. Despite earlier confusion regarding the role of Bilal Bin
Saqib, who has held various positions from Special Assistant to the Prime
Minister to his current role as PVARA Chairman, the regulatory body is now
operational. It has held its first board meeting, launched a Crypto Grievance
Cell, and published anti-money laundering (AML) regulations.
As the amnesty scheme moves forward and global giants like Binance engage in key discussions, Pakistan is signaling a decisive shift away from the grey market. The focus is now on regulation, sovereignty, and economic growth, as the country looks to capitalize on the vast potential of digital finance.