Dr Azmat Marri

Pakistan’s digital economy is entering a critical phase where innovation must advance hand in hand with regulation and trust. Recent developments, as highlighted in the brief, indicate that the country’s digital assets and Web3 ecosystem are gradually moving toward a more structured, compliant, and user-centric direction.

Below are three key developments that reflect this growing momentum:
Binance Leadership Engagement in Pakistan: A Compliance-First Signal
The engagement of Binance’s senior leadership in Pakistan points to increasing interest in the country as a long-term market, with a strong emphasis on responsible and compliant growth.
Such high-level discussions typically focus on:
alignment with regulators and policymakers,strengthening transparency and consumer safeguards,and supporting an ecosystem where innovation evolves within a secure and regulated framework.This approach helps lay the groundwork for sustainable adoption rather than short-term expansion.
2. Binance × JazzCash MOU: Expanding Web3 Access to the Masses.
One of the most notable updates in the brief is the Memorandum of Understanding between Binance and JazzCash, aimed at supporting regulated digital asset adoption in Pakistan.

The real value of this partnership lies in accessibility. JazzCash already serves millions of users across the country. If Web3 solutions are introduced alongside proper regulation and user protections, this collaboration can:
simplify onboarding for new users,raise public awareness,and provide safer, more familiar entry points into digital assets.
3. NOC for AML Registration: A Step Toward Formalization
Another important milestone is the issuance of a No Objection Certificate (NOC) for AML (Anti-Money Laundering) registration.

AML compliance strengthens defenses against illicit activity and enhances ecosystem credibility.
Regulatory progress such as an NOC signals a shift toward formalization, where accountability, consumer protection, and a clearer regulatory roadmap begin to take shape.

Over time, these steps can also support the transition toward broader licensing frameworks, including VASP-style licensing, as referenced in the brief.
Why This Matters
A resilient Web3 ecosystem in Pakistan depends on three pillars moving forward together:
Regulation and complianceTrust and transparencyAccess and inclusion for usersTaken together, these developments suggest that Pakistan is making meaningful progress toward building a safer, more regulated, and innovation-friendly digital asset ecosystem.

بالنسبة لأولئك الذين استمعوا إلى تعليقاتي خلال الأشهر الأخيرة، كنت أشير إلى أن هيكل السوق كان غير مواتٍ أساسًا لتحقيق مكاسب سعرية ذات معنى بسبب استمرار العرض من حاملي بيتكوين OG في حين أن الطلب الطبيعي من صناديق الاستثمار المتداولة وDATs قد تباطأ في نفس الوقت.
في الوقت نفسه، كنت أيضًا أؤكد على أهمية بيتكوين في العثور على مستوى تقلب ضمني أعلى بشكل ذو مغزى من خلال أسلوب مستدام، خاصة نحو الاتجاه الصاعد. صرخت "أعطني تقلبًا أو أعطني الموت" بينما كنت متفائلًا بمشاركة ما كان أول علامة على الانفجار غير العادي في نوفمبر حيث لاحظنا أخيرًا بعض الزيادة في التقلبات التي أعطتني الأمل.

Bank of Japan prepares to raise policy rate to 0.75% on December 18-19, the highest since 1995, as Bitcoin drops below $85,000 and crypto markets face $637 million in liquidations.

The Bank of Japan is preparing to raise its policy rate to 0.75% at its December 18-19 meeting, marking the first increase since January 2025 and pushing borrowing costs to their highest level in three decades.

According to Nikkei, Governor Kazuo Ueda and his executive team have signaled their intent to submit the rate-hike motion, with a majority of the nine-member Policy Board expected to approve the 25-basis-point increase from the current 0.5% level.

The move comes as Japan’s 10-year government bond yields have climbed to 1.94%, the highest since mid-2007, while Prime Minister Sanae Takaichi’s government has grown increasingly supportive of monetary tightening.
Bitcoin and Ethereum are facing renewed pressure ahead of the decision.

Crypto Markets Reel as Policy Shift Threatens Leveraged Positions
Speaking with Cryptonews, Ignacio Aguirre, CMO at Bitget, said a stronger yen “raises the risk of unwinding yen carry trades which is a move that can temporarily weigh on crypto valuations as leveraged positions reset across global markets.”

So far this month, Bitcoin saw the largest 24-hour wipeout, with approximately $251.69 million liquidated, while Ethereum followed with roughly $111.31 million in liquidations.
The selloff in Japanese government bonds has extended beyond domestic markets, pushing 10-year U.S.
Treasury yields up to about 4.08% as the policy shift rippled through global funding markets.

Crypto-exposed stocks felt the impact of Bitcoin’s slide as risk aversion picked up, with MicroStrategy shares falling sharply while Coinbase and Robinhood dropped by mid-single digits.
Stablecoin Growth Adds New Dynamic to Bond Market as BOJ Steps Back
Japan’s emerging stablecoin sector may reshape the country’s sovereign debt landscape as the BOJ reduces its bond purchases after years of aggressive monetary easing.
JPYC, the Tokyo-based issuer behind Japan’s first yen-pegged stablecoin, which launched in October under the nation’s revised Payment Services Act, has targeted circulation of 10 trillion yen within three years.

JPYC plans to invest 80% of its proceeds in JGBs and 20% in bank deposits, potentially filling the gap left by the central bank’s retreat from a market where it currently holds roughly 50% of the 1,055-trillion-yen total.