Pakistan’s Crypto Council Taps Convicted Ex-Binance CEO, Raising FATF Concerns

Pakistan’s decision to appoint Zhao Changpeng, the controversial founder of Binance, as a strategic adviser to its newly-formed Pakistan Crypto Council (PCC) is stirring debate, with critics warning of potential international ramifications, particularly with the Financial Action Task Force (FATF).

Zhao, a China-born Canadian billionaire widely known as “CZ,” was appointed last week to help guide Pakistan’s crypto regulatory efforts. The move comes less than a year after Zhao stepped down as CEO of Binance and served a four-month prison sentence in the United States for violating anti-money laundering laws. Binance also paid a $4.3 billion fine following the charges.

The PCC was launched in March to draft a comprehensive regulatory framework for Pakistan’s growing cryptocurrency sector. Zhao has already met with Prime Minister Shahbaz Sharif and Deputy Prime Minister Ishaq Dar following his appointment.

Muhammad Aurangzeb, Pakistan’s Finance Minister and chairman of the PCC, called Zhao’s inclusion a “landmark moment,” signaling the country’s openness to innovation in the digital economy. “Pakistan is open for innovation,” said an official statement from the ministry.

Pakistan’s cryptocurrency market is expanding rapidly, with analysts estimating three to four times more investors in crypto than in traditional equities. Shoaib Lalani, founder of Pakistan-based investment platform FinPocket, said, “If implemented correctly, the PCC could enhance governance and protect retail investors.”

However, Zhao’s criminal record has raised eyebrows in Pakistan’s financial and policy circles.

“This is either a failure of due diligence or a deliberate move to benefit a few,” said economist and tax expert Ikram ul Haq. “It once again shows that public interest often takes a backseat in decision-making.”

Others view the appointment more pragmatically. Ahsan Hamid Durrani, executive director at the Policy Research Center in Islamabad, acknowledged Zhao’s controversial background but emphasized his expertise. “Few individuals have Zhao’s global reach and technical insight into the crypto industry,” he said.

Government sources, speaking to Nikkei Asia on condition of anonymity, clarified that Zhao’s role is advisory only and that he will hold no formal regulatory power. “His involvement signals an openness to global expertise, not a weakening of our regulatory standards,” said the official.

Still, Zhao’s criminal conviction could complicate Pakistan’s standing with FATF. The country was on the FATF grey list from 2018 to 2022 and has been listed three times in the past two decades. According to research by economist Naafey Sardar, Pakistan lost an estimated $38 billion in economic potential between 2008 and 2021 due to repeated grey-listing.

“This move could invite fresh scrutiny from FATF,” warned Haq. “Given Pakistan’s recent history, the appointment of a figure like Zhao may be seen as a red flag.”

Durrani agreed, noting that Zhao’s presence—and Pakistan’s growing interest in digital assets—will likely attract attention from global regulators amid heightened concerns over crypto-related financial crimes.