Crypto coup

IT is quite the coup. One of the most recognisable names in the global cryptocurrency market has been roped in by the finance ministry to serve as ‘strategic adviser’ to the Pakistan Crypto Council, established to oversee and promote wider adoption of blockchain technology and digital assets within the country. Changpeng Zhao, or CZ as he is commonly known, is not only one of the richest persons in the world, thanks to early investments in cryptocurrencies, he is also the co-founder of popular trading platform Binance, the largest cryptocurrency trading exchange by volume in the world today. Mr Zhao is also intimately aware of the legal issues surrounding the crypto trade, thanks to his experiences as former CEO of Binance. That makes him a valuable ally for policymakers in Pakistan, who are gearing to go big on crypto and related technologies. “With Zhao onboard, we are accelerating our vision to make Pakistan a regional powerhouse for Web3, digital finance, and blockchain-driven growth,” the finance minister said.
There is no doubt that Mr Zhao’s onboarding will invite the right kind of interest from around the world. However, it is also hoped that his opinions and advice will be given careful consideration. After all, regulators worldwide have been quite suspicious of the crypto trade, and for many good reasons. Even in Pakistan, Binance had, till recently, been operating in a regulatory grey area, with the State Bank discouraging citizens from engaging in crypto trading and refusing to provide assistance in case they encountered fraudulent activity. Local investors will obviously feel much more confident knowing that the founder of Binance is now on board, but the aim should be to look at the bigger picture. Pakistan can emerge as a hub for future growth and innovation in these technologies if it plays its cards right. But to do that, it must overcome many regulatory challenges and limitations.
Published in Dawn, April 10th, 2025