Pakistan is considering a crypto trading amnesty as Binance urges integration of digital assets into the financial system and banks warn of compliance risks.
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Islamabad, Pakistan – December 6, 2025:
Pakistan is evaluating a time-bound amnesty for cryptocurrency traders, a move that could mark a turning point in the country’s approach to digital assets. The proposal emerged during a high-level meeting attended by Finance Minister Muhammad Aurangzeb, Pakistan Virtual Assets Regulatory Authority (PVARA) Chairman Bilal Bin Saqib, senior banking officials, and Binance’s global leadership. The conversation reflects a growing urgency to formalise a massive crypto economy currently operating outside Pakistan’s regulatory oversight.
According to Binance representatives, Pakistan hosts one of the largest unofficial crypto user bases in the world. They reported 17.5 million registered Pakistani accounts on their platform, nearly 4 million active traders, and approximately $5 billion in user-held assets. Annual trading volumes from Pakistani users alone were estimated at $250 billion, excluding activity on other platforms. Binance argued that integrating these digital assets into the financial system could expand Pakistan’s money supply and offer new tools for economic stabilisation. One representative described virtual-asset collateralisation as a way to increase the visibility and dependability of M1, the country’s most liquid measure of money supply.
Banks at the meeting pushed back forcefully, citing risks related to security, money laundering, asset verification and global regulatory precedents. These concerns have intensified as local traders increasingly move value offshore through unregulated exchanges. Binance countered that real-time tracking of user balances, API-linked verification systems, and oversight by the State Bank of Pakistan could provide the transparency banks need to lend against crypto-backed assets with confidence. They also floated the idea of using “shadow digital cash” as collateral, potentially boosting remittances and unlocking foreign inflows linked to US development funds and USAID credit lines.
The meeting extended beyond trading concerns and delved into the possibility of digitising Pakistan’s sovereign debt. Officials explored whether blockchain-based tokenisation of government bonds could attract new investors, improve liquidity and position Pakistan as a pioneer in compliant, blockchain-backed financial instruments. With the country facing persistent liquidity constraints and high borrowing costs, such discussions signal a willingness to consider unconventional financial solutions.
An official statement described the meeting as an effort to outline principles for a practical taxation and compliance structure. Instead of punitive crackdowns, the government is considering shifting primary oversight to licensed exchanges, gradually introducing capital-gains taxes and offering a temporary amnesty to encourage users to migrate assets onto regulated platforms. Such an amnesty would be designed to draw hidden crypto wealth into the formal economy, potentially unlocking billions in new liquidity.
Although PVARA Chairman Bilal Bin Saqib declined to comment — following his recent resignation as special assistant to the prime minister due to a conflict-of-interest matter — the official statement quoted him stressing that digital assets should be treated as critical financial infrastructure. He highlighted the potential for digital tools to enhance financial inclusion, expand banking services for the unbanked and generate new revenue opportunities for financial institutions through innovative products.
Participants also reviewed Pakistan’s broader roadmap for a secure digital-asset ecosystem. This includes establishing robust on- and off-ramp mechanisms, stronger compliance standards, enhanced transparency and deeper integration between banks and licensed exchanges. The discussion also touched on high transaction costs within Pakistan’s $38 billion annual remittance system. Blockchain-based channels, they argued, could lower costs and reduce leakages. Officials stressed the importance of building domestic blockchain and Web3 talent to meet rising global demand and create high-value employment opportunities for Pakistani youth.
Finance Minister Aurangzeb reiterated the government’s intention to build a regulatory environment that balances innovation with national economic security. He called for close collaboration between government agencies, banks and global exchanges to modernise Pakistan’s payment infrastructure and align it with international benchmarks.
Whether Pakistan ultimately adopts a crypto amnesty remains uncertain. The proposal could bring billions of dollars into the formal economy, expand liquidity and strengthen regulatory oversight. But without strong safeguards, it risks amplifying the very vulnerabilities banks are warning about. Pakistan now stands at a crossroads: it can choose to incorporate one of the world’s largest informal crypto markets into its financial system or maintain a status quo that leaves billions circulating in the shadows. The economic and regulatory decisions taken in the coming months will shape the country’s digital future.