Pakistan has taken a major step toward integrating blockchain technology into its financial system, signing a new agreement with Binance while also granting initial regulatory clearance to major global crypto platforms.
The Ministry of Finance on Friday signed a Memorandum of Understanding (MoU) with Binance Investments Co., Ltd., one of the world’s largest blockchain and digital asset technology firms.
The MoU was signed at the Finance Division in Islamabad by Federal Minister for Finance and Revenue Muhammad Aurangzeb and Richard Teng, Co-CEO of Binance, in the presence of Changpeng Zhao (CZ), CEO of Binance.
The agreement establishes a framework to explore collaboration on the tokenisation and blockchain-based distribution of Pakistan’s real-world and sovereign assets.
These assets may include government bonds, treasury bills, commodity reserves and other federally owned assets, subject to applicable laws, policies and regulatory approvals.
Assets worth up to $2bn under consideration
According to the Ministry of Finance, the initiative could involve assets of up to $2 billion, with the goal of enhancing liquidity, transparency and international investor access.
Any future implementation would be developed within Pakistan’s legal and regulatory framework and maintain full sovereign control.
Under the proposed arrangement, Binance and its affiliates may offer technical expertise, advisory services, training and capacity building.
This support would help Pakistan evaluate modern, compliant blockchain infrastructure and develop secure digital platforms that could broaden participation by global investors.
Minister calls MoU signal of reform momentum
Finance Minister Aurangzeb described the agreement as a strong signal of Pakistan’s reform trajectory and long-term vision.
“This is a very strong message — not only for Pakistan, but for the entire world,” Aurangzeb said, adding that the next step would be execution with speed and quality, backed by leadership at the highest level.
CZ calls agreement landmark
Binance CEO Changpeng Zhao termed the MoU a landmark development for Pakistan and its technology-driven youth. “This is the beginning … now we can move towards full deployment and execution,” he said, expressing confidence that the collaboration would deliver lasting economic benefits.
The MoU is non-binding and represents an expression of intent by both sides to explore feasibility.
Any definitive agreements would be negotiated within six months and remain subject to all legal, regulatory and policy approvals under Pakistani law, without exclusivity or procurement commitments.
Initial regulatory clearance to Binance, HTX
Separately, Pakistan has granted initial clearance to Binance and HTX, another major digital-asset platform, to begin the formal licensing process.
The Pakistan Virtual Assets Regulatory Authority (PVARA) issued No Objection Certificates (NOCs) after reviewing governance, compliance and risk controls.
The NOCs do not grant full operating licenses but allow the platforms to register with Pakistan’s anti-money-laundering system, set up regulated local subsidiaries and prepare full exchange licence applications once regulations are finalized.
PVARA said only well-governed and fully compliant platforms would advance under a phased licensing framework aligned with global AML and counter-terror financing standards.
Govt backs responsible crypto innovation
PVARA Chair Bilal bin Saqib called the move “the beginning of a new chapter” for Pakistan’s digital finance ecosystem.
Finance Minister Aurangzeb said the structured NOC framework demonstrates Pakistan’s commitment to responsible innovation and financial discipline.
Pakistan ranks as the world’s third-largest crypto market by retail activity, according to PVARA, highlighting the scale of adoption despite the absence of formal regulation until now.
The announcement comes as Pakistan accelerates a sweeping digital-finance overhaul.
Broader digital finance reforms
In recent months, Pakistan has created the Pakistan Crypto Council, established the Virtual Assets Regulatory Authority, and begun drafting a comprehensive licensing regime.
Plans are also in place for a central bank digital currency (CBDC) pilot and a Virtual Assets Act in 2025.
Pakistan has opened discussions with US-based World Liberty Financial on digital-asset infrastructure.
Separately, the government is evaluating proposals from crypto mining and AI data-centre operators interested in using surplus electricity for investment projects.
