The government said on Friday it was considering a “time-bound amnesty” for cryptocurrency traders as banks raised risk and compliance concerns over the more than $250 billion in annual crypto trading reportedly conducted by Pakistani users.
The proposal emerged during a high-level consultative meeting after Binance representatives argued that virtual assets could expand Pakistan’s GDP and should be recognised as part of the country’s liquid money supply (M1). “Virtual asset collateralisation will help increase M1 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, convened to advance work on Pakistan’s National Digital Asset Framework, was attended by the State Bank of Pakistan governor, the heads of major commercial banks, and senior Binance executives, including Global CEO Richard Teng. Participants reviewed options for sovereign-debt tokenisation to enhance liquidity, attract new investors and position Pakistan as a regional leader in compliant blockchain-based financial instruments.
According to an official statement, the discussion “outlined principles for a practical taxation and compliance framework,” including shifting primary oversight to licensed exchanges, introducing a gradual capital-gains structure and considering a time-limited amnesty to encourage users to move assets to regulated platforms.
Sources told Dawn that Binance executives reported 17.5 million registered Pakistani users on the platform, including nearly 4 million active traders holding about $5 billion in assets — with annual trading volumes around $250 billion. These figures exclude Pakistanis trading on other platforms.
“This unlocks $5 billion that Pakistani users could invest back into the economy in rupees,” a Binance official said, adding that banks could facilitate withdrawals of stablecoins. The exchange said loan liabilities could be verified through API-linked automated trading systems, helping reduce default rates.
Local banks voiced concerns about security, money laundering and global precedents for safeguarding both customers and institutions. Binance officials responded that real-time tracking of user assets and balances could help mitigate such risks, and that SBP’s involvement would allow banks to assess borrowing capacity and hold recognised dollar assets on the platform.
“Banks can lend confidently based on visible and verified assets,” one Binance representative assured participants. Officials added that so-called “shadow cash” (SDCs) could be used as collateral, potentially attracting billions in remittances on top of the roughly $38 billion Pakistan receives annually through formal channels. They also pointed to potential flow-through from US development funds and USAID-linked credit lines.
PVARA Chairman Bilal Bin Saqib — who recently stepped down as special assistant to the prime minister on blockchain and cryptocurrency due to a conflict of interest — declined to comment on the meeting.
However, an official statement quoted him emphasising the need to view digital assets as “critical financial infrastructure” capable of improving financial inclusion, expanding services for the unbanked and creating new revenue streams for banks through innovative products, greater deposits and new customer segments.
The meeting also reviewed Pakistan’s roadmap for building a secure, well-regulated digital-asset ecosystem, stressing the importance of responsible on- and off-ramp infrastructure, enhanced compliance standards, improved market transparency and deeper integration between licensed exchanges and traditional financial institutions.
Finance Minister Aurangzeb reaffirmed the government’s commitment to crafting a “robust and forward-looking” regulatory environment that encourages innovation while protecting national economic interests. He called for close coordination among government agencies, banks and global exchanges to modernise the payments landscape and align systems with international standards.
Participants also examined opportunities to reduce the high transaction costs associated with Pakistan’s $38bn annual remittance flows through blockchain-based systems. They underscored the need to develop domestic talent pipelines in blockchain and Web3 to meet rising global demand and unlock high-value employment opportunities for Pakistani youth.
Source: DAWN
Bd-pratidin English/ Jisan
