Pakistan’s former finance czar questions Binance selection for $2bn asset tokenisation deal, seeks transparency

Former finance minister Asad Umar has questioned the government’s decision to partner with global crypto exchange Binance for a $2 billion asset tokenisation initiative, calling for transparency in the selection process at what he described as a critical juncture for Pakistan’s digital finance trajectory.

Umar’s remarks came after the government confirmed on Friday that it had granted early regulatory clearances to Binance and HTX under Pakistan’s newly established virtual assets framework, while separately signing a memorandum of understanding with Binance to explore the tokenisation of major state-owned assets.

In a post on X, Umar said a real-world asset tokenisation agreement worth $2 billion had been signed between the government of Pakistan and Binance, but questioned how the exchange was chosen for the task. “What process was used to select Binance?” he asked, adding that Binance was neither a major global player in asset tokenisation nor carried what he described as a high level of credibility for such an initiative.

Umar further raised concerns about whether established global financial firms were consulted or invited to participate, questioning: “Were the leading global players in asset tokenization like Blackrock, UBS, Goldman Sachs, JP Morgan, HSBC etc invited to participate?” 

Umar said Pakistan’s first transaction in digital tokenisation would be crucial in establishing long-term credibility and success, stressing that decision-making should be conducted through a transparent process.

The government’s move is part of a broader push to regulate and integrate digital assets into Pakistan’s financial system. 

On Friday, the Pakistan Virtual Assets Regulatory Authority confirmed it had issued preliminary approvals to Binance and HTX following an assessment of governance standards and compliance systems. The approvals allow the exchanges to register under national anti-money laundering protocols, establish local entities and begin preparing applications for full licences.

Alongside the regulatory clearances, the Ministry of Finance announced it had signed an MoU with Binance to evaluate the digitisation of up to $2 billion worth of government-owned real-world assets. According to officials, the discussions will cover sovereign bonds, treasury bills and commodity reserves, including oil, gas and metals, with the stated aim of improving liquidity, transparency and access to international investors.

Tokenisation, which involves creating digital representations of traditional assets on blockchain-based systems, is gaining traction globally as governments seek new ways to modernise capital markets under tighter regulatory oversight. Countries including the United Arab Emirates, Japan and several European Union members have already introduced formal licensing regimes for virtual asset service providers.

Finance Minister Muhammad Aurangzeb has described the Binance MoU as part of Pakistan’s reform momentum and an opportunity to build long-term capacity in blockchain-based finance. 

Binance founder Changpeng Zhao has said the agreement signals Pakistan’s intent to become an active participant in the global digital asset ecosystem.

Pakistan’s digital finance roadmap includes the establishment of the Pakistan Crypto Council, the creation of the Virtual Assets Regulatory Authority, drafting of a comprehensive licensing framework and plans for a central bank digital currency pilot and a Virtual Assets Act in 2025. 

Officials have also pointed to Pakistan’s large retail crypto user base, with authorities previously stating that the country ranks among the world’s largest markets by adoption.