Pakistan’s Crypto Ambition: CZ’s Appointment and Its Strategic Significance
On April 7, 2025, the Pakistani government announced a decision that has drawn global attention in the cryptocurrency industry: it appointed Changpeng Zhao (CZ), founder of Binance, as a strategic advisor to the Pakistan Crypto Committee (PCC). This appointment signals Pakistan’s rapid integration into the global Web3 and blockchain technology wave, while also revealing the country’s deeper intent to use cryptocurrencies to drive economic transformation and attract international investment.
Background: From a “Cash Society” to a Blockchain Hub
Pakistan is one of the South Asian countries with the highest crypto adoption, boasting around 20 million active users and an annual transaction volume exceeding US$20 billion. However, for a long time, the country has faced challenges such as high transaction costs, regulatory gaps, and inefficient cross-border payments. In 2023, the Pakistani government first proposed establishing a national cryptocurrency committee, and in March 2025, the PCC was officially formed with the goals of developing regulatory frameworks, integrating blockchain technology, and protecting financial security.
CZ’s appointment is an extension of this strategic vision. As the founder of the world’s largest cryptocurrency exchange, his expertise in regulatory compliance, international resource integration, and blockchain application deployment was the key factor behind Pakistan’s decision to choose him as an advisor.
CZ’s Responsibilities: From Regulatory Frameworks to International Cooperation
According to public information, CZ’s role in the PCC focuses on three major areas:
Designing the Regulatory Framework:
Pakistan currently lacks a clear legal system for cryptocurrencies. CZ will assist in formulating international-standard anti-money laundering (AML) and know-your-customer (KYC) policies, while promoting the creation of a “national digital wallet” project that integrates cryptocurrency and fiat functions, ultimately reducing cross-border remittance costs (Pakistan’s remittance income in 2024 reached US$30 billion).
Developing the Technological Infrastructure:
CZ plans to promote the application of blockchain technology in cross-border payments, supply chain management, and public affairs. For example, he aims to collaborate with Kyrgyzstan to develop a customs blockchain system to optimize regional trade efficiency. Additionally, Pakistan is exploring the integration of its central bank digital currency (CBDC) with existing e-wallets such as Easypaisa to enhance financial inclusion.
Attracting International Resources:
CZ’s global influence is seen as a key to attracting foreign investment. His experience in expanding Binance’s presence in the Middle East and Southeast Asia (e.g., securing a license in the UAE’s Free Zone) may pave the way for bringing investments from institutions like Binance Labs and a16z into Pakistan.
Potential Impact: Opportunities and Controversies
Economic Transformation and Elevation of International Status:
If Pakistan successfully establishes a robust compliance framework, it could become the first South Asian nation to widely apply blockchain technology in areas such as public administration and healthcare. CZ’s involvement might also accelerate cross-border payment collaborations between Pakistan and Middle Eastern or Central Asian countries, potentially positioning cryptocurrencies as alternatives for remittance settlements.
For investors, this move opens up new market opportunities. For example, Pakistan plans to stimulate crypto adoption in retail settings via “cashback” policies—mechanisms similar to those found in WEMIX PLAY may be replicated locally. Investors can monitor related token dynamics through platforms like JuCoin.
Regulatory Pressure and Compliance Risks:
CZ’s appointment has sparked controversy as well. His past conviction in 2023 for violating the U.S. Bank Secrecy Act might subject Pakistani regulatory policies to international scrutiny, particularly concerning crypto activities involving USD settlement. Moreover, the U.S. SEC’s recent investigation of Binance may also affect trust between Pakistan and Western financial institutions.
Industry Implications: Exploring a Web3 Path in Emerging Markets
Pakistan’s case offers a reference model for other developing countries by:
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Balancing Policy and Technology:Utilizing international experts to bridge local technical gaps while maintaining sovereign regulatory control.
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Innovating Localized Use Cases:For instance, blockchain can optimize agricultural supply chains (Pakistan is the world’s fifth-largest cotton producer) or develop compliant products in line with Islamic finance rules.
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Regional Collaborative Development:Co-building cross-border blockchain networks with Middle Eastern and Southeast Asian countries to reduce reliance on the traditional financial system.
For everyday investors, it is important to monitor the rollout of Pakistan’s regulatory guidelines and liquidity changes in the market, as well as to understand risk management strategies.
Future Outlook
Pakistan plans to publish its “National Cryptocurrency Strategic Whitepaper” in Q2 2025, which will clarify details on taxation and cross-border flows. Whether CZ’s role as a consultant can help Pakistan realize its “blockchain hub” vision will depend not only on local execution but also on finding the right position amid global regulatory negotiations. If successful, this experiment could reshape the cryptocurrency market in South Asia and beyond.
Neason Oliver
