France has cancelled a meeting with the UK to discuss Channel crossings after Boris Johnson asked the French to take back migrants arriving in Britain.
French interior minister Gerald Darmanin has told Home Secretary Priti Patel “she was no longer welcome” at Sunday’s European meeting on migrant issues, a French government spokesman said.
Spokesman Gabriel Attal said it was because of Mr Johnson’s letter to French President Emmanuel Macron.
“That letter was formally poor and its content inappropriate,” Mr Attal told BFMTV.
Image: This is what remains of the boat that capsized in the Channel and resulted in the deaths of 27 people
Mr Darmanin said the letter is a “disappointment” and the fact it was made public was “worse”, according to reports in French media.
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An Interior Ministry statement, reported in French media, said the letter was “unacceptable and contrary to our discussions between counterparts”.
The meeting will now go ahead with just France, Belgium, the Netherlands, Germany and the European Commission.
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Conservative MP Tim Loughton told Sky News the French need to “get read” and realise there are consequences to “turning a blind eye” to Channel crossings.
He added that the PM has “come up with practical solutions” and it is “extraordinary” Paris has cancelled the meeting.
Mr Darmanin and Ms Patel spoke on Thursday, with the Home Secretary’s office saying they emphasised the need for “deeper co-operation” and agreed to remain in touch.
Governments on both sides of the Channel have been blaming each other this week after 27 migrants drowned on Wednesday evening off the coast of France as they tried to get to the UK on a small dinghy.
In the letter to Mr Macron, which he tweeted out, the PM set out five steps he thinks both sides should take “as soon as possible”.
The PM’s five-point plan entails:
• Joint patrols to prevent migrant boats from leaving French beaches • Using more advanced technology such as sensors and radar • Carry out reciprocal maritime patrols in each nation’s territorial waters and utilise airborne surveillance • “Deepening the work” of the Joint Intelligence Cell and ensuring there is better intelligence sharing to drive more arrests and prosecutions • Committing to “immediate work” to strike a bilateral returns agreement between Paris and London, as well as discussions on a UK-EU agreement.
Image: Migrants, including young children, arriving in the UK the day after 27 died
“If those who reach this country were swiftly returned the incentive for people to put their lives in the hands of traffickers would be significantly reduced,” Mr Johnson said.
“This would be the single biggest step we could take together to reduce the draw to Northern France and break the business model of criminal gangs.
“I am confident that by taking these steps and building on our existing cooperation we can address illegal migration and prevent more families from experiencing the devastating loss we saw yesterday.”
Suggestions the number of migrants crossing the Channel has reached record levels this year due to Brexit were dismissed by transport secretary Grant Shapps.
He told Sky News: “I think it’s a bit of a red herring to mix it up with Brexit, it’s not even an argument I’ve heard before.
“There were plenty of people crossing before but in different ways, they tended to do it by lorry but what’s different here is the number of people doing it by sea.
“I think the Europe argument is confusing here because it’s not related to that. It’s heartbreaking to see and I think it’s incumbent on the UK and France to do everything they can do to resolve this and get on top of this human tragedy.”
A New York jury was unable to reach a verdict in the case of Anton and James Peraire-Bueno, the MIT-educated brothers accused of fraud and money laundering related to a 2023 exploit of the Ethereum blockchain that resulted in the removal of $25 million in digital assets.
In a Friday ruling, US District Judge Jessica Clarke declared a mistrial in the case after jurors failed to agree on whether to convict or acquit the brothers, Inner City Press reported.
The decision came after a three-week trial in Manhattan federal court, resulting in differing theories from prosecutors and the defense regarding the Peraire-Buenos’ alleged actions involving maximal extractable value (MEV) bots.
A MEV attack occurs when traders or validators exploit transaction ordering on a blockchain for profit. Using automated MEV bots, they front-run or sandwich other trades by paying higher fees for priority.
In the brothers’ case, they allegedly used MEV bots to “trick” users into trades. The exploit, though planned by the two for months, reportedly took just 12 seconds to net the pair $25 million.
In closing arguments to the jury this week, prosecutors argued that the brothers “tricked” and “defrauded” users by engaging in a “bait and switch” scheme, allowing them to extract about $25 million in crypto. They cited evidence suggesting that the two plotted their moves for months and researched potential consequences of their actions.
“Ladies and gentlemen, bait and switch is not a trading strategy,” said prosecutors on Tuesday, according to Inner City Press. “It is fraud. It is cheating. It is rigging the system. They pretended to be a legitimate MEV-Boost validator.”
In contrast, defense lawyers for the Peraire-Buenos pushed back against the US government’s theory of the two pretending to be “honest validators” to extract the funds, though the court ultimately allowed the argument to be presented to the jury.
“This is like stealing a base in baseball,” said the defense team on Tuesday. “If there’s no fraud, there’s no conspiracy, there’s no money laundering.”
What’s at stake for the crypto industry following the verdict?
Though the case ended without a verdict, the mistrial has left the crypto industry divided, with many observers debating the legal and technical implications of treating MEV-related activity as a potential criminal offense. Crypto advocacy organization Coin Center filed an amicus brief on Monday after opposition from prosecutors.
“I don’t think what’s in the indictment constitutes wire fraud,” said Carl Volz, a partner at law firm Gunnercooke, in a Monday op-ed for DLNews. “A jury could conclude differently, but if it does, it’ll be because the brothers googled stupidly and talked too much, for too long, with the wrong people.”
The shutdown of the US government entered its 38th day on Friday, with the Senate set to vote on a funding bill that could temporarily restore operations.
According to the US Senate’s calendar of business on Friday, the chamber will consider a House of Representatives continuing resolution to fund the government. It’s unclear whether the bill will cross the 60-vote threshold needed to pass in the Senate after numerous failed attempts in the previous weeks.
Amid the shutdown, Republican and Democratic lawmakers have reportedly continued discussions on the digital asset market structure bill. The legislation, passed as the CLARITY Act in the House in July and referred to as the Responsible Financial Innovation Act in the Senate, is expected to provide a comprehensive regulatory framework for cryptocurrencies in the US.
Although members of Congress have continued to receive paychecks during the shutdown — unlike many agencies, where staff have been furloughed and others are working without pay — any legislation, including that related to crypto, seems to have taken a backseat to addressing the shutdown.
At the time of publication, it was unclear how much support Republicans may have gained from Democrats, who have held the line in demanding the extension of healthcare subsidies and reversing cuts from a July funding bill.
Is the Republicans’ timeline for the crypto bill still attainable?
Wyoming Senator Cynthia Lummis, one of the market structure bill’s most prominent advocates in Congress, said in August that Republicans planned to have the legislation through the Senate Banking Committee by the end of September, the Senate Agriculture Committee in October and signed into law by 2026.
Though reports suggested lawmakers on each committee were discussing terms for the bill, the timeline seemed less likely amid a government shutdown and the holidays approaching.
Japan’s financial regulator, the Financial Services Agency (FSA), endorsed a project by the country’s largest financial institutions to jointly issue yen-backed stablecoins.
In a Friday statement, the FSA announced the launch of its “Payment Innovation Project” as a response to progress in “the use of blockchain technology to enhance payments.” The initiative involves Mizuho Bank, Mitsubishi UFJ Bank, Sumitomo Mitsui Banking Corporation, Mitsubishi Corporation and its financial arm and Progmat, MUFG’s stablecoin issuance platform.
The announcement follows recent reports that those companies plan to modernize corporate settlements and reduce transaction costs through a yen-based stablecoin project built on MUFG’s stablecoin issuance platform Progmat. The institutions in question serve over 300,000 corporate clients.
The regulator noted that, starting this month, the companies will begin issuing payment stablecoins. The initiative aims to improve user convenience, enhance Japanese corporate productivity and innovate the local financial landscape.
The participating companies are expected to ensure that users are protected and informed about the systems they use. “After the completion of the pilot project, the FSA plans to publish the results and conclusions,” the announcement reads.
The announcement follows the Monday launch of Tokyo-based fintech firm JPYC’s Japan-first yen-backed stablecoin, along with a dedicated platform. The company’s president, Noriyoshi Okabe, said at the time that seven companies are already planning to incorporate the new stablecoin.
Recently, Japanese regulators have been hard at work setting new rules for the cryptocurrency industry. So much so that Bybit, the world’s second-largest crypto exchange by trading volume, announced it will pause new user registrations in the country as it adapts to the new conditions.
Local regulators seem to be opening up to the industry. Earlier this month, the FSA was reported to be preparing to review regulations that could allow banks to acquire and hold cryptocurrencies such as Bitcoin (BTC) for investment purposes.
At the same time, Japan’s securities regulator was also reported to be working on regulations to ban and punish crypto insider trading. Following the change, Japan’s Securities and Exchange Surveillance Commission would be authorized to investigate suspicious trading activity and impose fines on violators.