Thu Apr 10 05:56:07 UTC 2025: ## Pakistan Embraces Crypto Despite Concerns: Binance Founder Advises New Regulatory Council

**Islamabad, Pakistan –** Pakistan has taken a significant step towards integrating cryptocurrencies into its financial system with the launch of the Pakistan Crypto Council (PCC) and the appointment of Binance founder Changpeng Zhao as an advisor. While the government hails this as a move to position Pakistan as a regional Web3 leader, attracting investment and fostering innovation, skepticism remains about the country’s readiness for such a leap.

The PCC aims to create a regulatory framework for cryptocurrencies, balancing innovation with investor protection. The appointment of Zhao, despite his past conviction on US money laundering charges, signals a strong commitment to embracing the crypto sector. Zhao himself emphasized Pakistan’s large, young population as a key factor for growth potential.

This policy shift follows years of hesitancy. A 2018 ban on financial institutions processing cryptocurrency transactions has been effectively reversed. The government cites the influence of global trends, particularly US President Trump’s evolving stance on crypto, as a motivating factor. Estimates suggest 15 to 20 million Pakistanis already hold crypto, highlighting the existing, unregulated market.

While supporters like Ali Farid Khwaja, chairman of KTrade Securities, argue that regulation is crucial to prevent tax evasion and protect investors, concerns persist. Ibrahim Khalil, a banking and finance professional, questions the practicality of prioritizing crypto in a country with significant infrastructure challenges and argues that blockchain technology hasn’t yet lived up to its global hype. He also points out that regulation undermines crypto’s core principle of avoiding government oversight.

The weak digital infrastructure, including unreliable electricity and slow internet speeds, presents a substantial hurdle to widespread crypto adoption. The high energy consumption of cryptocurrency mining, particularly Bitcoin, further complicates the issue. While Pakistan has potentially missed the opportunity to become a major mining hub, the possibility of using nuclear power as a source for mining was suggested.

A further concern is the potential for cryptocurrency to be exploited by terrorist groups. The Tehreek-e-Taliban Pakistan (TTP) has openly solicited crypto donations, raising concerns about the use of platforms like Binance for illicit financing. Experts warn of the need for strong anti-money laundering measures and strict regulations on centralized exchanges to mitigate these risks.

The appointment of Zhao, given his past legal issues and the TTP’s use of Binance, has drawn criticism. Some question the government’s due diligence process, raising concerns about potential conflicts of interest. Ultimately, Pakistan’s foray into crypto presents both significant opportunities and substantial risks. The success of this initiative hinges on navigating the complex interplay of technological innovation, regulatory challenges, and the potential for misuse by criminal elements.

Read More