• Pakistani users trade over $250bn in crypto annually, Binance reveals
• Around 17.5m Pakistanis registered on platform, holding $5bn in virtual assets
• Banks flag security, compliance concerns over crypto integration
ISLAMABAD: The government said on Friday it was considering a “time-bound amnesty” for cryptocurrency traders, as local banks raised risk and compliance concerns amid more than $250 billion in annual crypto trading reportedly conducted by Pakistani users.
Officials floated the idea at a high-level consultative meeting after a top global cryptocurrency exchange argued that virtual assets could boost Pakistan’s GDP.
“These virtual assets should be considered as part of liquid money supply (M-1) … virtual assets collateralisation will help increase M-1” because these are highly visible and dependable, a Binance team member told the meeting, co-chaired by Finance Minister Muhammad Aurangzeb and Pakistan Virtual Assets Regulatory Authority (PVARA) Chairman Bilal Bin Saqib.
The meeting had been arranged to discuss and advance work on Pakistan’s National Digital Asset Framework, an official statement said, adding that the State Bank of Pakistan (SBP) governor also attended, along with presidents and executives of the country’s leading commercial banks and senior leaders from Binance, including Global CEO Richard Teng.
The meeting examined sovereign debt tokenisation to enhance liquidity, widen investor access and position Pakistan as a regional frontrunner in compliant blockchain-based financial instruments.
The meeting also “outlined principles for a practical taxation and compliance framework, including shifting primary oversight to licensed exchanges, designing a gradual capital gains structure to promote stability and considering a time-bound amnesty to encourage users to move assets onto regulated platforms”, the statement said.
Sources told Dawn that the Binance team reported that about 17.5 million Pakistanis were currently registered traders of Binance, including 4m active traders. They jointly hold around $5bn in virtual assets with Binance alone, with annual trading turnover of around $250bn.
Pakistani users with other crypto companies are not part of this. Binance had more than 300m active users, mostly in 22 countries.
“This unlocks $5bn of assets that Pakistani users are now able to invest back into economy in Pakistani rupees,” a Binance official said, adding that “banks could also make withdrawals of stablecoins”.
Binance will determine maximum existing loan liability to the bank through Application Programming Interface (API) used for automated trading, “vastly reducing Pakistani users’ default rates”, the official claimed.
Banks raise concerns
The local banks raised questions about security risks and global experiences to safeguard stakeholders’ — banks and customers — interest, including in terms of money laundering issues.
They were told that Binance could help address those concerns through its experiences in other countries as real-time reporting of any individual users’ virtual assets and balances was traceable and visible.
In addition, the SBP’s participation would allow Pakistani banks to determine borrowing capacity and to hold recognised US dollar assets on the Binance platform, hence increasing Pakistan’s asset base and overall volumes to the Pakistan economy.
“Banks can lend confidently based on visible and verified assets,” a Binance official was quoted as assuring local bank representatives.
The banks were told that SDCs — a term used for “shadow cash” — were usable assets for bank credits and loans, and Pakistan would be able to attract billions of US dollars by providing a new avenue for remittances on top of roughly $38bn sent annually through conventional routes by overseas Pakistanis.
The officials said US infrastructure development funds, USAID and US Treasury-linked credits could further drive dollar flows into Pakistan and “boost GDP and economic growth”, despite inherent challenges.
PVARA Chairman Bilal Bin Saqib, who recently stepped down as special assistant to the prime minister on blockchain and cryptocurrency because of a conflict of interest with his regulatory role, declined to comment on the meeting.
An official statement, however, said he stressed the “importance of viewing digital assets as critical financial infrastructure with significant potential to support financial inclusion, expand access to services for the unbanked and create new opportunities for banks through innovative products, expanded deposits and new customer segments”.
The statement said the meeting reviewed Pakistan’s next steps towards building a secure, well-regulated and innovation-driven digital asset ecosystem, with a particular emphasis on responsible operationalisation of on-and-off-ramp infrastructure, enhanced compliance standards, improved market transparency and stronger integration of regulated financial institutions.
Finance Minister Aurangzeb reiterated Pakistan’s commitment to establishing a robust and forward-looking regulatory environment that supports technological innovation while safeguarding national economic interests.
He called for close coordination between government agencies, licensed global exchanges and domestic banks for modernising the payments landscape, improving financial inclusion and aligning national systems with international standards.
The statement said the participants reviewed opportunities to modernise Pakistan’s digital payments landscape, noting that blockchain-based systems could significantly reduce costs from the country’s $38bn annual remittance flows.
They emphasised the need to build local talent pipelines to meet rising global demand for blockchain and Web3 skills, creating high-value employment opportunities for Pakistani youth.
Published in Dawn, December 6th, 2025
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