Something strange seems to be going on in the Conservative government.
Recent weeks have seen ministers announce mandatory vaccination to enter nightclubs, speak supportively of businesses that demand workers are jabbed and moot the idea of barring students from university who’ve not been inoculated.
Novel developments for members of the self-professed “freedom-loving” party.
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The question being asked in Westminster is whether this is genuine policy – or just a PR stunt.
“There’s a lot of attempts to drive vaccine uptake and lots of concepts being mooted subtly or not so subtly with no real intent behind them,” said one Whitehall official.
One of the proposals has already been shelved, with the government announcing this weekend there are now no plans to use the COVID pass for access to learning.
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Education Secretary Gavin Williamson is understood to have made clear there would have been legal implications and potentially little benefit, given polling shows a vast majority of students say they will have the jab.
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But the fact these ideas are even being suggested is enough to drive some backbenchers potty.
Several MPs have already said they won’t be attending this year’s party conference if they are forced to show their vaccination status.
Others worry about sailing too close to compulsory vaccination and the ethical implications of a heavy-handed approach.
“It was wrong-headed and should have been done by carrots,” says one senior backbencher of the plan for universities.
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Those carrots now appear to be sprouting, with companies like Uber and Deliveroo offering discounts to customers who get vaccinated.
Scientists say these approaches are not without risk, but still avoid many of the problems of the negative incentive “stick” strategy.
“They are less likely to lead to perceptions of compulsion and generate a process of ‘reactance’ where people resist in order to reassert their autonomy,” said Professor Stephen Reicher, an advisor to the government on public behaviour.
But as well as the societal impact, there’s also a business impact.
Those in hospitality say Health Secretary Sajid Javid’s initially bullish tone on reopening led to share price boosts and funds flowing in.
Speculative stories about COVID passports disrupt that, with a single front page story potentially undoing weeks of growing confidence.
The calculation in government may be that the longer-term benefit of high vaccine uptake to the economy and society is worth any short-term bumpiness.
But some, like Professor Reicher, worry that neither the carrot nor the stick will be sufficient on their own.
“What is critical is to show people that the authorities are of the community and acting for the community,” he said.
“That is why processes of engagement are generally much more effective than processes of incentivisation.”
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Brazilâs central bank completed rules that bring crypto companies under banking-style oversight, classifying stablecoin transactions and certain self-custody wallet transfers as foreign-exchange operations.Â
Under Resolutions 519, 520 and 521, published Monday, the Banco Central do Brasil (BCB) established operational standards and authorization procedures for what it calls Sociedades Prestadoras de Serviços de Ativos Virtuais (SPSAVs), a new category of licensed virtual-asset service providers operating in the country.Â
The framework extends existing rules on consumer protection, transparency and Anti-Money Laundering (AML) to crypto brokers, custodians and intermediaries.Â
The rules will take effect on Feb. 2, 2026, with mandatory reporting for capital-market and cross-border operations set to begin on May 4, 2026.Â
Stablecoins under foreign exchange rules
Under Resolution 521, a purchase, sale or exchange of fiat-pegged virtual assets, including international transfers or payments using such assets, will be treated as foreign-exchange (FX) operations.Â
With this classification, stablecoin activity will be subject to the same scrutiny as cross-border remittances or currency trades.Â
Licensed FX institutions and the new SPSAVs will be able to perform these operations, subject to documentation and value limitations. According to the BCB, transactions with unlicensed foreign counterparts will be capped at $100,000 per transfer.Â
The rules also cover transfers to and from self-custodied wallets when intermediated by a service provider. This means that providers must identify the walletâs owner and maintain their processes that verify the origin and destination of the assets, even if the transfer itself isnât cross-border.Â
This provision extends AML and transparency obligations to areas previously considered outside the scope of regulated finance.
While the rules donât explicitly ban self-custody, they close a key reporting gap, forcing regulated exchanges and brokers to treat wallet interactions like formal FX operations.Â
BCB says the goal is to promote efficiency and legal certainty
In the announcement, the BCB said its goal is to ensure âgreater efficiency and legal certainty,â prevent regulatory arbitrage and align crypto activities with the countryâs balance-of-payments (BoP) statistics, which means making stablecoin transfers visible in official financial data.Â
The move follows months of public consultation and growing concern from the central bank on the dominance of stablecoin use in Brazil. On Feb. 7, BCB President Gabriel Galipolo said that around 90% of crypto activity in Brazil involved stablecoins, mainly used for payments.
Galipolo said the widespread use of stablecoins in payments presented regulatory and oversight challenges, particularly in areas such as money laundering and taxation.Â
Brazilâs central bank said the new framework aims to curb scams and illicit activity while providing legal clarity to crypto markets.Â
For crypto builders, this may raise compliance costs and reshape how local platforms interact with global liquidity. Smaller crypto players will be forced to compete with bigger institutions and meet more stringent banking-grade standards.Â
The rules will take effect in February 2026, but market participants are expected to start restructuring before then.Â
For Brazil, where crypto activity is second only to Argentina in Latin America, the new regulations signal a decisive shift from experimentation to integrated oversight.
The new rules show that crypto is welcome in the Brazilian financial ecosystem, but it will have to play by the same rules as fiat money.Â
Institutional investors are maintaining confidence in digital assets despite a sharp market correction in October, with most planning to expand their exposure in the months ahead, according to new research.
Over 61% of institutions plan to increase their cryptocurrency investments, while 55% hold a bullish short-term outlook, Swiss crypto banking group Sygnum said in a report released on Tuesday. The survey covered 1,000 institutional investors globally.
Roughly 73% of surveyed institutions are investing in crypto due to expectations of higher future returns, despite the industry still recovering from the record $20 billion market crash at the beginning of October.
However, investor sentiment continues facing uncertainty due to delays in key market catalysts, including the Market Structure bill and the approval of more altcoin exchange-traded funds (ETFs).
While this uncertainty may carry over into 2026, Sygnumâs lead crypto asset ecosystem researcher, Lucas Schweiger, predicts a maturing digital asset market, where institutions seek diversified exposure with long-term growth expectations.
âThe story of 2025 is one of measured risk, pending regulatory decisions and powerful demand catalysts against a backdrop of fiscal and geopolitical pressures,â he said, adding:
âBut investors are now better informed. Discipline has tempered exuberance, but not conviction, in the marketâs long-term growth trajectory.âÂ
Despite Octoberâs correction, âpowerful demand catalystsâ and institutional participation remained at an all-time high, with the growing ETF applications signaling more institutional demand, added Schweiger.
Crypto staking ETFs may be the next institutional catalyst
Crypto staking ETFs may present the next fundamental catalyst for institutional cryptocurrency demand.
Over 80% of the surveyed institutions expressed interest in crypto ETFs beyond Bitcoin (BTC) and Ether (ETH), while 70% stated that they would start investing or increase their investments if these ETFs offered staking rewards.
Staking means locking your tokens into a proof-of-stake (PoS) blockchain network for a predetermined period to secure the network and earn passive income in exchange.
Meanwhile, investors are now anticipating the end of the government shutdown, which could bring âbulk approvalsâ for altcoin ETFs from the US Securities and Exchange Commission, catalyzing the ânext wave of institutional flows,â according to Sygnum.