Malaysia, Pakistan explore digital finance alliance to set Islamic crypto standards

Malaysia’s Foreign Minister Mohamad Bin Haji Hasan met Monday with Bilal Bin Saqib, CEO of the Pakistan Crypto Council, to discuss strengthening cooperation in blockchain technology, digital assets and Islamic finance, officials said.

The talks in Kuala Lumpur centered on establishing a Pakistan-Malaysia Digital Finance Partnership, which would develop regulatory frameworks for digital assets compliant with the Financial Action Task Force (FATF) and Islamic financial principles. The initiative aims to serve as a model for the Organisation of Islamic Cooperation (OIC).

“Malaysia’s leadership in Islamic finance and Pakistan’s momentum in crypto regulation form a natural alliance,” Saqib said. “Together, we have a historic opportunity to set global standards for ethical innovation in digital finance.”

Key discussion points included regulatory coordination between financial authorities and cross-border programs for talent development and Web3 education.

The meeting follows the recent appointment of Binance founder Changpeng Zhao, known as “CZ,” as a strategic advisor to the Pakistan Crypto Council, signaling growing international interest in Pakistan’s digital finance sector.

Malaysia has positioned itself as a hub for Shariah-compliant fintech, while Pakistan has been advancing cryptocurrency regulations to attract investment. The proposed partnership could pave the way for joint projects, including halal stablecoins and tokenized Islamic bonds, known as sukuks.

No immediate agreements were announced, but both sides expressed optimism about future collaboration.