ISLAMABAD: Pakistan on Friday gave initial clearance for Binance and HTX, two major global cryptocurrency exchanges, to register with regulators to set up local subsidiaries and begin preparations for full exchange licence applications, the Pakistan Virtual Assets Regulatory Authority (PVARA) said.

The PVARA said it had issued early approvals to Binance and HTX after reviewing their governance and compliance controls. The clearances allow them to register on the Anti-Money Laundering system, set up local units and prepare full applications.

PVARA Chairman Bilal bin Saqib said the clearances kick off Pakistan’s phased licensing process and signalled that compliance strength will determine which exchanges move ahead.

The initiative comes as Pakistan speeds up a major digital-finance overhaul in just a few months, creating the Pakistan Crypto Council (PCC) and establishing the PVARA, while drafting a formal licensing regime.

MoU signed with Binance to explore ‘tokenisation’ of up to $2bn of assets

Pakistan ranks as the world’s third-largest crypto market by retail activity, Mr Saqib said at Binance Blockchain Week Dubai 2025 earlier this week.

A central bank digital currency pilot and a Virtual Assets Act are also planned for 2025.

The PCC signed a letter of intent with US-based World Liberty Financial to explore stablecoin use, tokenisation and other digital-asset infrastructure, the finance ministry said in April.

MoU with Binance

Also on Friday, the Ministry of Finance signed a memorandum of understanding (MoU) with Binance Investments Co Ltd, a global blockchain and digital asset technology company, to explore the use of emerging financial technologies in Pakistan’s capital markets and enhance access for international investors.

The MoU was signed by Federal Minister for Finance and Revenue Muhammad Aurangzeb and Binance co-chief executive Richard Teng, in the presence of Binance CEO Changpeng Zhao, the ministry said in a statement.

According to the statement, the MoU establishes a framework for exploring potential collaboration on the tokenisation and blockchain-based distribution of Pakistan’s real-world and sovereign assets, including government bonds, treasury bills, commodity reserves and other federally owned assets.

Subject to applicable laws, policies and regulatory approvals, the initiative may involve assets of up to $2 billion, with the objective of enhancing liquidity, transparency and access to international markets.

Under the proposed arrangement, Binance and its affiliates may provide technical expertise, advisory support, training and capacity building to help Pakistan assess and adopt modern, compliant blockchain infrastructure.

The collaboration aims to explore secure and transparent digital platforms that could facilitate broader participation by international investors, while fully respecting Pakistan’s regulatory framework and sovereign control.

Mr Aurangzeb described the MoU as a strong signal of Pakistan’s reform trajectory. “This is a very strong message — not only for Pakistan, but for the entire world. What we have signed today reflects a long-term partnership. From where we started to moving towards operationalisation, this progress could not have happened without active guidance and leadership.”

The next step “for us is execution, and we are fully committed to delivering results with speed and quality”, the minister said, acknowledging the vision and support of the country’s top leadership.

Changpeng Zhao, commonly known as CZ, termed the MoU a landmark development for Pakistan’s future. “This is a great signal for the global blockchain industry and for Pakistan. It has a very big impact on the country’s future and its technology-driven generation. This is the beginning … now we can move towards full deployment and execution”, he said, adding that collaboration will deliver positive and lasting outcomes for the economy.

The MoU is non-binding and reflects an expression of intent by both parties to explore feasibility. Definitive agreements, if any, will be negotiated within six months, subject to all legal, regulatory and policy approvals. Any future arrangement will be governed by the laws of Pakistan and will not constitute exclusivity or a procurement commitment.

This collaboration underscores Pakistan’s commitment to responsible financial innovation, strong governance and compliance, and marks an important milestone in aligning the country’s financial ecosystem with evolving global best practices, the statement said.

With input from Reuters and APP

Published in Dawn, December 13th, 2025