Crypto: Pakistan & CZ

Pakistan Takes a Bold Step: Appoints Changpeng Zhao as Crypto Advisor Amidst Growing Adoption

Pakistan is seriously intending to embrace the burgeoning world of cryptocurrencies and blockchain technology with a significant and attention-grabbing appointment. Former Binance CEO, Changpeng “CZ” Zhao, has been named as an advisor to the country's newly established Pakistan Crypto Council (PCC).¹ This move, confirmed by Pakistan's finance ministry in early April 2025, underscores the nation's ambition to develop a robust regulatory framework and attract foreign investment in the digital asset space.

The formation of the Pakistan Crypto Council in March 2025 was the first clear indication of the government's proactive stance towards this evolving industry.² Tasked with the crucial responsibility of overseeing the adoption of blockchain technology and digital assets, the PCC now gains a heavyweight advisor in CZ.³ His extensive experience as the head of one of the world's largest cryptocurrency exchanges, from its inception in 2017 until his resignation in November 2023, brings invaluable insights into the intricacies of the crypto market, regulatory landscapes, and infrastructure development.

While CZ's tenure at Binance concluded amidst legal challenges in the United States related to money laundering violations – for which he received a four-month prison sentence – his deep understanding of the global crypto ecosystem remains undeniable. Pakistan's strategic decision to bring him on board highlights the potential value his expertise can offer in navigating the complexities of cryptocurrency regulation and fostering responsible adoption within the country.

Why This Matters for Pakistan:

This appointment carries significant implications for Pakistan's economic and technological landscape:

• Attracting Foreign Investment: CZ's global recognition and influence within the crypto industry can act as a magnet for foreign investment. His involvement lends credibility to Pakistan's efforts to create a conducive environment for digital asset businesses.
• Developing a Clear Regulatory Framework: One of CZ's primary roles will be to advise the PCC on crafting effective and balanced cryptocurrency regulations. This is crucial for providing clarity to businesses and investors, fostering innovation while mitigating risks.
• Building Robust Infrastructure: CZ's experience in building and scaling a global cryptocurrency exchange can provide valuable guidance in developing the necessary infrastructure to support the adoption and growth of digital assets in Pakistan.⁴ This includes areas like secure trading platforms, custody solutions, and payment gateways.⁵
• Capitalizing on a High-Growth Market: Pakistan, with its large and youthful population, coupled with a significant diaspora, presents a compelling high-growth market for the crypto industry.⁶ The appointment of CZ signals a commitment to tap into this potential and position Pakistan as a key player in the Web3 space.⁷
• Leveraging a Web3-Native Workforce: The CEO of the PCC, Bilal bin Saqib, has highlighted Pakistan's "Web3 native workforce" as a key asset.⁸ CZ's guidance can help nurture this talent and create opportunities within the blockchain and digital asset sectors.

Pakistan's Crypto Landscape: A Look at Adoption and Opportunities:

Pakistan has long been identified as a country with significant potential for crypto adoption.⁹ Several factors contribute to this:

• Strong Retail Adoption: Despite regulatory uncertainties in the past, Pakistan has witnessed strong retail adoption of cryptocurrencies, as evidenced by its high ranking in Chainalysis' 2024 crypto adoption index.¹⁰ This indicates a grassroots interest and a willingness among the population to engage with digital assets.
• Large Diaspora and Remittances: The country's large diaspora sends significant remittances back home.¹¹ The formal remittance channels saw a surge in value in late 2024 following a crackdown on black market dollar trades, suggesting a potential shift towards more regulated financial avenues, where digital assets could play a future role.
• Black Market for Foreign Exchange: Historically, a thriving black market for foreign exchange trades has existed in Pakistan. Cryptocurrencies offer an alternative avenue for cross-border transactions, and a well-regulated framework could potentially channel some of this activity into formal and transparent systems.

Challenges and the Path Forward:

While the appointment of CZ is a positive step, Pakistan still faces challenges in establishing a thriving and regulated crypto ecosystem. These include:

• Building Trust and Security: Ensuring the security of digital asset platforms and protecting investors from scams and fraud will be paramount. Robust regulations and consumer protection measures will be essential.
• Educating the Public: Raising awareness and educating the public about the risks and benefits of cryptocurrencies and blockchain technology will be crucial for widespread and informed adoption.
• Interoperability with Existing Financial Systems: Integrating the crypto ecosystem with traditional financial systems will be necessary for seamless transactions and broader economic impact.

Conclusion:

Pakistan's decision to appoint Changpeng Zhao as a crypto advisor marks a significant turning point in its approach to digital assets. It signals a clear intention to move beyond the sidelines and actively participate in the global crypto revolution. CZ's expertise, combined with the country's inherent potential for crypto adoption, could pave the way for the development of a dynamic and well-regulated digital asset landscape in Pakistan, attracting investment, fostering innovation, and ultimately contributing to economic growth. The world will be watching closely to see how this strategic move unfolds and shapes the future of crypto in the South Asian nation.