"" "" # *Detailed SUMMARY of the article "Crypto politics" by Zahid Hussain, Published in Dawn on June 4th, 2025:* The article examines *Pakistan*'s ambitious *cryptocurrency venture* following the country's shift from expecting *mineral deposits* to change economic fortunes to now banking on *crypto mining* and *digital assets*. The government established the *Pakistan Crypto Council (PCC)* to fast-track this initiative, though no *policy framework* exists yet. The excitement appears triggered by *US President Donald Trump*'s obsessive interest in *bitcoin business*. For the *establishment-backed dispensation*, this venture offers opportunities to attract *foreign investment* and reset relations with the *Trump administration*, with many analysts seeing connections between *cryptocurrency enthusiasm* and *Washington*'s policy shift favoring *Islamabad*. The government plans to create *strategic reserves* of cryptocurrency and provide *incentives* for *bitcoin mining* investments. *PCC head Bilal Bin Saqib* unveiled plans at a *Las Vegas bitcoin conference* attended by *US Vice-President J.D. Vance* and *Trump*'s sons *Eric Trump* and *Donald Trump Jr*, who have major *cryptocurrency interests*. *Bin Saqib* announced a *national bitcoin wallet* for *digital assets* in *state custody*, claiming *Pakistan* has over *40 million crypto wallets* and is among the *largest freelancer economies* globally. He thanked *Trump* for *peacemaking efforts* in recent *India-Pakistan hostilities* and *crypto adoption commitment*. The government allocated *2,000 megawatts* of *surplus electricity* at *concessionary rates* for *bitcoin mining* to encourage *sovereign miners* and *tech firms*. The *Finance Division* describes this as part of a broader strategy to *monetize surplus electricity*, create *high-tech jobs*, attract *billions in foreign direct investment*, and generate *government revenue*. However, there's a huge disconnect between ambitious plans and existing *laws* that don't recognize *cryptocurrencies* as *legal tender*, raising questions about the *legality* of using *cryptocurrency* for *strategic reserves*. It's also *illegal* under *financial crime laws* to deal in *crypto assets*. Without clear *policy* and *economic frameworks*, the *crypto business plan* becomes *dubious*. *Foreign investment* in *crypto mining* requires clear *legal policy frameworks* to protect investors. A major *PCC* challenge is formulating a *FATF-compliant regulatory framework* for *digital assets*, launching *bitcoin mining initiatives*, and overseeing *blockchain integration*. *Bitcoin*, launched in *2009*, is based on *speculative trading*, raising concerns about its use as *strategic reserves*. *Pakistan* competes with *Gulf states* for *crypto foreign investment*, with analysts believing the government cannot supply *power* at competitive rates compared to other countries. The *ruling establishment* is excited by reported *Trump family* interest in *crypto business*. Since returning to power, *Trump*'s family's *crypto business* made massive money, with his promotion leading to debates about *top office authority misuse*. *Trump* eased *cryptocurrency industry oversight* while fast-tracking *crypto ventures* that reaped billions from investors, including foreign ones, raising *ethical* and *legal concerns*. The *Trump family*'s *World Liberty Financial (WLF)*, launched last year, reached a *$2 billion investment deal* with *Binance*, an *Abu Dhabi financial fund* in *crypto exchange* that previously admitted to *money laundering* and violations. *Two Trump scions* played key roles in the deal announced at an *Abu Dhabi crypto conference* two weeks before *Trump*'s *UAE visit*, sparking allegations of *improper foreign influence* and *ethics violations*. In *April*, the *PCC* announced a partnership with *WLF* to advance *cryptocurrency applications* and boost *blockchain adoption* in *Pakistan*. The *State Democracy Defenders Fund* estimates *Trump*'s *crypto ventures* at *$2.9 billion* as of mid-March. *American Bitcoin*, cofounded by *Eric Trump*, plans to go public, expanding *Trump family* investments across the *crypto industry*. Some analysts call *Trump*'s *crypto dealings* the biggest scandal highlighting *corruption* and *conflict of interest*. The article concludes that *Pakistan* needs to move cautiously while opening *crypto business*, warning it would be perilous to expect investment from *Trump family holdings*, and that *cryptocurrency euphoria* is misplaced without clear *strategy* and *legal framework*. # *Easy/Short SUMMARY*: *Pakistan* established the *Pakistan Crypto Council (PCC)* to fast-track *cryptocurrency* and *bitcoin mining* ventures, hoping to attract *foreign investment* and improve relations with *Trump*'s administration. The government allocated *2,000 megawatts* of *surplus electricity* for *bitcoin mining* and plans *strategic crypto reserves*. However, existing *laws* don't recognize *cryptocurrencies* as *legal tender*, making government plans potentially *illegal*. The excitement stems from *Trump family*'s *crypto interests*, including *World Liberty Financial*'s *$2 billion deal* with *Binance*. The article warns that without proper *legal frameworks* and *policy*, the *crypto euphoria* is misplaced and potentially perilous. # *SOLUTIONS of The Problem*: ## *1. Establish Legal Framework* Create comprehensive *cryptocurrency laws* recognizing *digital assets* as *legal tender* and establishing *regulatory compliance*. ## *2. Develop FATF-Compliant Regulations* Formulate *FATF-compliant regulatory framework* for *digital assets* to prevent *money laundering* and *financial crimes*. ## *3. Create Clear Investment Policy* Develop transparent *investment policies* to protect *foreign investors* in *crypto mining* ventures. ## *4. Ensure Power Supply Competitiveness* Guarantee *competitive electricity rates* for *crypto mining* to compete with *Gulf states* and other countries. ## *5. Strengthen Oversight Mechanisms* Establish robust *oversight bodies* to monitor *crypto transactions* and prevent *illegal activities*. ## *6. Diversify Investment Sources* Avoid over-reliance on *Trump family* investments and seek diverse *international crypto investors*. ## *7. Build Technical Infrastructure* Develop necessary *blockchain infrastructure* and *technical capabilities* for *crypto operations*. ## *8. Train Regulatory Personnel* Educate *financial regulators* and *law enforcement* on *cryptocurrency* monitoring and compliance. ## *9. Conduct Feasibility Studies* Perform comprehensive *economic feasibility studies* before implementing *crypto mining* projects. ## *10. Establish Strategic Reserves Framework* Create legal mechanisms for *government crypto reserves* while ensuring *transparency* and *accountability*. # *IMPORTANT Facts and Figures Given in the article*: - *Pakistan Crypto Council (PCC)* established to fast-track *cryptocurrency* ventures. - *Pakistan* has over *40 million crypto wallets*. - Government allocated *2,000 megawatts* of *surplus electricity* for *bitcoin mining*. - *Bitcoin* launched in *2009* based on *speculative trading*. - *Trump family*'s *World Liberty Financial* reached *$2 billion investment deal* with *Binance*. - *Trump*'s *crypto ventures* estimated at *$2.9 billion* as of mid-March. # *IMPORTANT Facts and Figures out of the article*: - *Global crypto market* valued at *$2.3 trillion* in *2024* (*CoinMarketCap*, 2024). - *Bitcoin mining* consumes *150 TWh* of electricity annually (*Cambridge*, 2024). - *Pakistan*'s *electricity generation capacity* is *39,000 MW* (*NEPRA*, 2024). - *FATF* has *37 member countries* monitoring *financial crimes* (*FATF*, 2024). - *UAE* is the *4th largest crypto market* globally (*Chainalysis*, 2024). - *Pakistan*'s *freelancer economy* contributes *$1 billion* annually (*SBP*, 2024). # *MCQs from the Article*: ### 1. *Who is the head of Pakistan Crypto Council (PCC)?* A. Zahid Hussain *B. Bilal Bin Saqib* C. Eric Trump D. J.D. Vance ### 2. *How much surplus electricity did Pakistan allocate for bitcoin mining?* A. 1,000 megawatts *B. 2,000 megawatts* C. 3,000 megawatts D. 4,000 megawatts ### 3. *When was Bitcoin launched?* A. 2007 B. 2008 *C. 2009* D. 2010 ### 4. *What is the value of Trump's crypto ventures as estimated by watchdog groups?* A. $2.5 billion B. $2.7 billion *C. $2.9 billion* D. $3.1 billion ### 5. *Which company reached a $2 billion investment deal with Binance?* A. American Bitcoin *B. World Liberty Financial* C. Pakistan Crypto Council D. State Democracy Defenders Fund # *VOCABULARY*: 1. *Inexplicable* (ناقابل وضاحت) – Unable to be explained or understood 2. *Dispensation* (نظام) – System of government or management 3. *Concessionary* (رعایتی) – Involving special reduced rates or privileges 4. *Sovereign* (خودمختار) – Having supreme power or authority 5. *Monetise* (منافع بخش بنانا) – Convert into or earn money from 6. *Notwithstanding* (باوجود) – In spite of or despite 7. *Disconnect* (عدم ربط) – Lack of connection or understanding 8. *Tender* (قانونی کرنسی) – Legal currency accepted for payment 9. *Dubious* (مشکوک) – Doubtful or questionable 10. *Conjecture* (قیاس) – Opinion based on incomplete information 11. *Speculative* (قیاس آرائی) – Based on guesswork rather than facts 12. *Zealous* (جوشیلا) – Showing great energy or passion 13. *Perilous* (خطرناک) – Full of danger or risk 14. *Euphoria* (خوشی کی لہر) – Feeling of intense excitement 15. *Misplaced* (غلط جگہ) – Incorrectly positioned or directed 16. *Scions* (اولاد) – Descendants or offspring 17. *Improper* (نامناسب) – Not appropriate or correct 18. *Ethics* (اخلاقیات) – Moral principles governing behavior 19. *Watchdog* (نگران ادارہ) – Organization monitoring others' activities 20. *Compliance* (تعمیل) – Conformity with rules or standards 📢 *Attention Please!* We appreciate your commitment to acquiring knowledge through our summaries. Please be reminded not to remove the attribution label affixed to this article. It is crucial to acknowledge the source and the effort invested in creating this summary. We discourage any unauthorized distribution without proper credit. Thank you for your understanding and cooperation. 🔍 ⚡ *Explore More Summaries, Solutions, and Vocabulary Meanings* 💡 Join our WhatsApp Channel for timely and comprehensive summaries of the latest articles, along with well-crafted solutions and helpful vocabulary meanings. Click the link below to join now 🔗 [Dawn Article Summaries](https://cssmcqs.com/dawn-editorials-articles-summary-for-students-pdf-download/) *WhatsApp Channel Link*: [https://whatsapp.com/channel/0029Va7tT3o35fLnJeFbpS2y](https://whatsapp.com/channel/0029Va7tT3o35fLnJeFbpS2y) --- *dawn.com* *Crypto politics* *Zahid Hussain* *6–8 minutes* NOT too long ago, it was vast mineral deposits that were supposed to change the country's economic fortunes. Now it's cryptocurrency and crypto mining that are supposed make the nation rich. The government has already set up the Pakistan Crypto Council (PCC) in an attempt to fast-track the venture, though there is still no policy framework in place. Curiously, the inexplicable excitement about cryptocurrency seems to have been triggered by US President Donald Trump's obsessive interest in the bitcoin business. For the establishment-backed dispensation, the venture could provide an opportunity to attract foreign investment as well as help reset relations with the Trump administration. Many analysts see a connection between the government's enthusiasm for cryptocurrency and a shift in Washington's policy in favour of Islamabad. The government not only plans to create its own 'strategic reserves' of cryptocurrency but also to provide incentives to those potentially investing in bitcoin mining. Addressing a conference on bitcoin in Las Vegas last month, Bilal Bin Saqib, the newly appointed PCC head, unveiled an ambitious plan for the establishment of a national bitcoin wallet, holding "digital assets already in state custody". The conference, held in Las Vegas, was attended by US Vice-President J.D. Vance and Trump's sons Eric Trump and Donald Trump Jr, who have a major interest in cryptocurrency. Bin Saqib has been touring the US seeking investment for Pakistan's crypto market. "Pakistan is no longer defined by its past. It is being reborn as a forward-looking hub of digital innovation — powered by its youth, sharpened by necessity, and led by a new generation of tech statesmen," Bin Saqib told the conference. He further stated that with over 40 million crypto wallets Pakistan is one of the "largest and most active freelancer economies in the world". He also thanked the US president for his peacemaking efforts in the recent India-Pakistan hostilities as well as his "commitment to crypto adoption". In the absence of a clear policy and economic framework, the crypto plan appears dubious. Pakistan's crypto head also said that the government had allocated 2,000 megawatts of surplus electricity on concessionary rates for bitcoin mining in its bid to encourage sovereign miners and tech firms. According to the Finance Division, the ambitious initiative is part of a broader strategy to "monetise surplus electricity, create high-tech jobs, attract billions of dollars in foreign direct investment, and generate billions of dollars for the government". Notwithstanding these solemn pronouncements, there is still huge disconnect between the government's ambitious plan and the existing laws that do not recognise cryptocurrencies as legal tender. That also raises questions about the legality of the government's plan to use cryptocurrency to build a strategic reserve. More importantly, it's not legal under the country's financial crime laws to deal in crypto assets. The government should have done its homework before launching this ambitious project. In the absence of a clear policy and economic framework, the crypto business plan becomes dubious. Then there is also the question of the potential of foreign investment in crypto mining, which requires a clear legal policy framework to protect investors. A major challenge for the PCC is to formulate a FATF-compliant regulatory framework for digital assets, launching bitcoin mining initiatives and overseeing blockchain integration. Bitcoin, which was launched in 2009, is widely considered the first digital asset that is entirely based on speculative trading. This has led to conjecture regarding its potential use as a strategic reserve. Then there are also concerns about the government's promise to provide power supply on competitive rates to crypto mining companies. Pakistan would be competing with other countries, particularly the Gulf states, for foreign investment in the crypto business. Most analysts believe that it would not be possible for the government to supply power at a low rate compared to what is offered by other countries. What seems to have excited our ruling establishment most is the reported interest of the Trump family in the crypto business. Since the American president's return to power, his family's crypto business has made massive amounts of money. His relentless promotion of the cryptocurrency business has also led to debate on the top office's misuse of its authority. After returning to the White House, Trump has eased oversight of the cryptocurrency industry, while he and his sons have fast-tracked crypto ventures that have reaped billions, profiting off investors including foreign ones. Such a move raises ethical and legal concerns. According to media reports, the Trump family's crypto venture, the World Liberty Financial (WLF), launched last year, has reached a $2bn investment deal with Binance, an Abu Dhabi financial fund in crypto exchange, which previously admitted to money laundering and other violations. Two Trump scions played a key part in the deal that was announced at an Abu Dhabi crypto conference held two weeks before Trump's visit last month to the UAE. It sparked allegations of improper foreign influence and ethics. Similarly, in April, the PCC had announce a partnership with the WLF to "advance cryptocurrency applications and boost blockchain adoption" in Pakistan. Trump's zealous pursuit of crypto fortunes has been highlighted in a report by the watchdog group State Democracy Defenders Fund that estimates his crypto ventures as of mid-March at $2.9bn. American Bitcoin, a crypto firm cofounded by Eric Trump, said that it has plans to go public — in an expansion of the Trump family's investments across the crypto industry. Some analysts point out that Trump's dealings in crypto is the biggest scandal highlighting corruption and a conflict of interest. In this situation, Pakistan needs to move more cautiously while opening up the crypto business. It would be perilous to expect investment from the Trump family holdings. The euphoria surrounding the cryptocurrency business is misplaced without a clear strategy and legal framework. The writer is an author and journalist. [email protected] X: @hidhussain Published in Dawn, June 4th, 2025 "" ""