Pakistan needs a formal cryptocurrency industry association to represent investors, improve market transparency and strengthen engagement with international digital asset exchanges, Asia Web3 Alliance Japan (AWAJ) President Hinza Asif has said.
Her proposal follows a reported multibillion-dollar cybersecurity breach involving Binance, which has raised concerns about investor protection and the ability of Pakistani users to seek assistance when major international cryptocurrency platforms face security or financial disruptions.
In a statement, Asif said Pakistan’s expanding cryptocurrency market lacked an organised representative body to coordinate investor concerns, facilitate communication with international exchanges and engage with policymakers.
She also highlighted the shortage of reliable market data, arguing that the absence of verified information makes it difficult to determine the actual number of cryptocurrency investors and assess their financial exposure.
Pakistan Ranks Among World’s Leading Cryptocurrency Markets
Pakistan ranked third in the 2025 Global Crypto Adoption Index published by blockchain analytics firm Chainalysis, reflecting the country’s significant participation in the global digital asset market.
Estimates cited by Asif suggest that Pakistan has approximately 40 million crypto-linked accounts, with digital asset exposure ranging between $10 billion and $20 billion. However, these figures have not been officially verified as representing individual investors.
The distinction is important because the number of cryptocurrency accounts does not necessarily represent unique users or the total value of assets held by Pakistani investors.
According to Asif, the lack of comprehensive market data makes it difficult to assess the sector’s actual size and identify potential risks facing investors.
She said an independent industry association could help address these gaps by promoting credible market research, improving information-sharing and providing a structured platform for industry representation.
Binance Security Breach Raises Investor Protection Concerns
The reported cybersecurity breach involving Binance has renewed concerns about the risks associated with centralised cryptocurrency exchanges and the potential consequences for digital asset investors.
Security incidents involving major trading platforms can expose users to unauthorised transactions, financial losses and temporary withdrawal disruptions. They can also create uncertainty about the recovery of affected assets and the procedures available to customers seeking assistance.
Asif said the potential impact of the Binance incident on Pakistani investors remained unclear and required independent verification.
“The question is who will represent and protect Pakistani investors if an international exchange faces a major cybersecurity or financial crisis,” she said.
She noted that Pakistan lacked an established industry-level mechanism through which affected investors could coordinate complaints, communicate with international exchanges and seek collective representation during major incidents.
A formal industry body, she argued, could provide a structured channel for communication between investors, cryptocurrency businesses and international stakeholders.
AWAJ Calls for Independent Industry Association Alongside PVARA
Asif welcomed the government’s regulatory initiatives through the Pakistan Virtual Assets Regulatory Authority (PVARA), saying an independent industry association could complement the regulator’s responsibilities.
Pakistan’s Virtual Assets Act, 2026 established the legal framework for regulating virtual assets and service providers. PVARA is responsible for licensing, supervising and regulating virtual asset service providers operating in the country.
The authority has also published the Pakistan Virtual Asset Services Regulations, 2026, covering licensing, governance, compliance, technology requirements and client asset protection.
Asif said the regulator and an independent industry association should perform separate but complementary functions.
While PVARA would oversee regulatory compliance within its legal mandate, an industry representative body could bring together fintech companies, blockchain businesses, technology professionals and cryptocurrency investors.
Such an organisation could facilitate consultations with policymakers, communicate industry concerns and establish formal relationships with international digital asset organisations.
Pakistan Urged to Strengthen Digital Finance Infrastructure
Beyond establishing an industry association, Asif proposed a national digital finance platform supported by reliable market research, coordinated investor grievance mechanisms and cybersecurity awareness initiatives.
She also called for formal partnerships with international industry organisations to encourage knowledge-sharing and strengthen Pakistan’s participation in the global digital economy.
According to Asif, Pakistan’s digital finance potential extends beyond cryptocurrency trading. Blockchain applications, digital payment systems, fintech entrepreneurship and international investment could also create opportunities for businesses and technology professionals.
The development of a formal industry association could provide a platform for these stakeholders to engage with regulators, investors and international organisations.
As Pakistan advances its virtual asset regulatory framework, investor protection, market transparency and cybersecurity preparedness are likely to remain important considerations for the country’s growing digital asset industry.
