Pakistan, Malaysia to Collaborate on FATF-Compliant, Shariah-Aligned Crypto Framework

In a move signaling growing regional interest in digital asset regulation, Malaysia’s Foreign Minister, Mohamad Bin Haji Hasan, held a meeting with Bilal Bin Saqib, CEO of the Pakistan Crypto Council (PCC), to discuss potential collaboration in shariah-aligned crypto framework, including blockchain and digital assets.

The discussion centered around forming a Pakistan-Malaysia Digital Finance Partnership — an initiative aimed at developing frameworks for Shariah-compliant and FATF-aligned digital finance systems. Both parties emphasized the need for cross-border regulatory coordination, knowledge exchange, and the co-creation of ethical finance models that align with Islamic principles. Bilal Bin Saqib stated that Malaysia’s established position in Islamic finance and Pakistan’s recent efforts in crypto regulation could form the basis of a complementary partnership.

Malaysia’s leadership in Islamic finance and Pakistan’s momentum in crypto regulation form a natural alliance. Together, we have a historic opportunity to set global standards for ethical innovation in digital finance — from halal stablecoins and tokenized sukuks to compliant regulatory sandboxes and youth empowerment.

Bilal-bin-Saqib

The Pakistan Crypto Council is currently working on a crypto regulatory model tailored to emerging markets, which it says aims to balance innovation with global compliance standards.

Key areas discussed in the meeting included:

• Alignment between financial regulators in both countries

• Joint talent development initiatives focused on Web3 technologies

• Educational collaboration to build capacity in blockchain and fintech sectors

This development comes amid growing global scrutiny of crypto markets and increasing interest among Islamic countries in building frameworks that merge digital finance with religious and ethical guidelines.

The meeting also follows the recent announcement that Binance founder Changpeng Zhao has joined the Pakistan Crypto Council as a strategic advisor — a move seen by some as an endorsement of Pakistan’s efforts to formalize its crypto regulatory approach.

This collaboration between Pakistan and Malaysia marks a significant step toward establishing a Shariah-Aligned Crypto Framework, aligning digital finance with ethical standards. While the potential for cross-border cooperation in blockchain technology is clear, the real challenge lies in effectively navigating regulatory complexities and aligning diverse financial systems. Both countries will need to address issues such as regulatory compliance, market acceptance, and technical integration to ensure that these frameworks are not only innovative but also viable in the long term.

While no formal agreements have been signed yet, both sides expressed interest in continuing dialogue and potentially involving other Organisation of Islamic Cooperation (OIC) member states in future discussions.

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