Two-child benefit cap: Yvette Cooper refuses to say if she backs Labour’s decision to keep controversial policy

Published

2 years ago

July 17, 2023

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Labour’s Yvette Cooper has refused to say if she supports Sir Keir Starmer’s decision to keep the two-child benefit cap, amid growing party divisions over the issue.

The shadow home secretary said that – while the party wanted to address child poverty – “we’ve got to keep saying how we will pay for things”.

Sir Keir revealed over the weekend that he would keep the two-child benefit cap, which prevents parents fclaiming child benefits for any third or subsequent child born after April 2017.

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He had previously opposed the limit during his campaign to be Labour leader – prompting accusations of a U-turn from critics.

Sir Keir’s intervention over the weekend also prompted a fresh backlash from his MPs, with Dame Meg Hillier, the chair of the Public Accounts Committee, saying she was “never comfortable about having the child benefit cap come in” and that she would personally lobby for it to be lifted.

Rosie Duffield, the MP for Canterbury, also tweeted that it was one of the “most unpleasant pieces of legislation ever to have been passed in the UK”.

It also emerged that several shadow cabinet ministers have previously spoken out against the policy, with Labour’s deputy leader Angela Rayner describing it as “obscene and inhumane” and Jonathan Ashworth, the shadow work and pensions secretary branding it “heinous”.

Asked whether she personally supported the cap, Ms Cooper avoided the question but repeated that Labour could not make unfunded promises.

And pressed on whether Labour would spend money on public services, she said Labour had already set out areas where it would increase investment, such as funding education through scrapping tax exemptions from private schools and the non-dom tax status.

Ms Cooper also cited breakfast clubs, reforming Universal Credit and having a “long-term plan” to get people into work as measures the party would take to slash child poverty.

“We want to invest in our public services, but we’re also being really straight with people about where the funding is going to come from because we know that we’ve got to be really responsible with the public finances, and also show that we can deliver,” she said.

“I think people are fed up of promises that they think can’t be delivered.”

But pushed on whether she supported keeping the cap, Ms Cooper did not answer the question and replied: “We’ve got to be clear about what we can fund and that’s why Keir Starmer set out the position.”

Labour’s stance has prompted fears among some stakeholders, including trade unions, that its offer to the public is not bold enough nor different enough from the Tories going into the next election.

Mick Lynch, the general secretary of the RMT union, told Sky’s Sophy Ridge On Sunday programme that Sir Keir should be “saying something about workers’ rights, he should say stuff about funding the NHS … addressing all sorts of stuff about what’s going to happen in the imbalance in our society”.

He added: “It’s a shame that Labour and others can’t show that they’re distinct from the kind of consensus that’s got us into this trouble where working people are struggling, the cost of living crisis seems to be ignored by the political class to certain extent.

“I don’t think Labour’s doing enough, we will be critical of Labour when they don’t do the right stuff and we will be supportive on the occasions that they do.

“And at the minute, many people can’t spot the difference and that’s a shame for somebody who’s probably as talented as Keir Starmer is, he’s got to show that he’s on the side of working people and progressive politics, and I don’t think we’re seeing that.”

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Trump tariffs squeeze already struggling Bitcoin miners — Braiins exec

Published

7 hours ago

April 4, 2025

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Trump tariffs squeeze already struggling Bitcoin miners — Braiins exec

The new trade tariffs announced by US President Donald Trump may place added pressure on the Bitcoin mining ecosystem both domestically and globally, according to one industry executive.

While the US is home to Bitcoin (BTC) mining manufacturing firms such as Auradine, it’s still “not possible to make the whole supply chain, including materials, US-based,” Kristian Csepcsar, chief marketing officer at BTC mining tech provider Braiins, told Cointelegraph.

On April 2, Trump announced sweeping tariffs, imposing a 10% tariff on all countries that export to the US and introducing “reciprocal” levies targeting America’s key trading partners.

Community members have debated the potential effects of the tariffs on Bitcoin, with some saying their impact has been overstated, while others see them as a significant threat.

Tariffs compound existing mining challenges

Csepcsar said the mining industry is already experiencing tough times, pointing to key indicators like the BTC hashprice.

Hashprice — a measure of a miner’s daily revenue per unit of hash power spent to mine BTC blocks — has been on the decline since 2022 and dropped to all-time lows of $50 for the first time in 2024.

According to data from Bitbo, the BTC hashprice was still hovering around all-time low levels of $53 on March 30.

“Hashprice is the key metric miners follow to understand their bottom line. It is how many dollars one terahash makes a day. A key profitability metric, and it is at all-time lows, ever,” Csepcsar said.

He added that mining equipment tariffs were already increasing under the Biden administration in 2024, and cited comments from Summer Meng, general manager at Chinese crypto mining supplier Bitmars.

“But they keep getting stricter under Trump,” Csepcsar added, referring to companies such as the China-based Bitmain — the world’s largest ASIC manufacturer — which is subject to the new tariffs.

Trump’s latest measures include a 34% additional tariff on top of an existing 20% levy for Chinese mining imports. In response, China reportedly imposed its own retaliatory tariffs on April 4.

BTC mining firms to “lose in the short term”

Csepcsar also noted that cutting-edge chips for crypto mining are currently massively produced in countries like Taiwan and South Korea, which were hit by new 32% and 25% tariffs, respectively.

“It will take a decade for the US to catch up with cutting-edge chip manufacturing. So again, companies, including American ones, lose in the short term,” he said.

Csepcsar also observed that some countries in the Commonwealth of Independent States region, including Russia and Kazakhstan, have been beefing up mining efforts and could potentially overtake the US in hashrate dominance.

“If we continue to see trade war, these regions with low tariffs and more favorable mining conditions can see a major boom,” Csepcsar warned.

As the newly announced tariffs potentially hurt Bitcoin mining both globally and in the US, it may become more difficult for Trump to keep his promise of making the US the global mining leader.

Trump’s stance on crypto has shifted multiple times over the years. As his administration embraces a more pro-crypto agenda, it remains to be seen how the latest economic policies will impact his long-term strategy for digital assets.

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Malta regulator fines OKX crypto exchange $1.2M for past AML breaches

Published

7 hours ago

April 4, 2025

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Malta regulator fines OKX crypto exchange .2M for past AML breaches

Cryptocurrency exchange OKX is under renewed regulatory scrutiny in Europe after Maltese authorities issued a major fine for violations of Anti-Money Laundering (AML) laws.

Malta’s Financial Intelligence Analysis Unit (FIAU) fined Okcoin Europe — OKX’s Europe-based subsidiary — 1.1 million euros ($1.2 million) after detecting multiple AML failures on the platform in the past, the authority announced on April 3.

While admitting that OKX has significantly improved its AML policies in the past 18 months, the authority “could not ignore” its past compliance failures from 2023, “some of which were deemed to be serious and systematic,” the FIAU notice said.

OKX was among the first crypto exchanges to receive a license under Europe’s new Markets in Crypto-Assets (MiCA) regulation via its Malta hub in January 2025.

The news of the $1.2 million penalty in Malta came after Bloomberg in March reported that European Union regulators were probing OKX for laundering $100 million in funds from the Bybit hack.

Bybit CEO Ben Zhou previously claimed that OKX’s Web3 proxy allowed hackers to launder about $100 million, or 40,233 Ether (ETH), from the $1.5 billion hack that occurred in February.

This is a developing story, and further information will be added as it becomes available.

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US court fines UAE crypto firm CLS Global $428K for wash trading

Published

8 hours ago

April 4, 2025

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US court fines UAE crypto firm CLS Global 8K for wash trading

Authorities in the US state of Massachusetts continue targeting unlawful cryptocurrency market practices, with a local court fining crypto financial services firm CLS Global.

A federal court in Boston on April 2 sentenced CLS Global on criminal charges related to fraudulent manipulation of crypto trading volume, according to an announcement from the Massachusetts US Attorney’s Office.

In addition to a $428,059 fine, the court prohibited CLS Global from offering services in the US for a probation period of three years.

CLS Global, a crypto market maker registered in the United Arab Emirates, in January pleaded guilty to one count of conspiracy to commit market manipulation and one count of wire fraud.

CLS agreed to manipulate the FBI’s “trap token” NexFundAI

The charges against CLS Global followed an undercover law enforcement operation involving NexFundAI, a token created by the FBI as part of a sting operation in May 2024.

CLS Global was among at least three firms that took the FBI’s bait and agreed to provide “market maker services” for NexFundAI, including a fraudulent scheme to attract investors to purchase the token.

In October 2024, the Securities and Exchange Commission announced fraud charges against CLS and its employee, Andrey Zhorzhes. The US securities regulator also filed complaints against two other NexFundAI manipulators, Hong Kong-linked ZM Quant Investment and Russia-linked Gotbit Consulting.

CLS Global’s profile

According to CLS Global CEO Filipp Veselov, the company was founded in 2017 to fill in a “huge gap in the market for high-quality market-making solutions and trading consulting.”

Prior to CLS, Veselov worked at the Russian cryptocurrency exchange platform Latoken, which is advertised as a “global digital asset exchange” and has about 370,000 followers on X.

The CLS team also includes chief revenue officer Pavel Singaevskii, who previously served as sales manager at Stex, a crypto platform that reportedly ceased operations without warning in 2023.

US court fines UAE crypto firm CLS Global $428K for wash trading — *Source:* *CLS Global*

According to CLS Global’s X page, the platform continues operating and has more than 110,000 followers at the time of publication.

How much wash trading is in crypto?

Wash trading is an illegal practice involving artificially inflating trading volume by repeatedly buying and selling the same asset, generating a misleading perception of demand.

According to a January 2025 report by the US blockchain analytics firm Chainalysis, the crypto market has at least $2.6 billion in estimated wash traded volumes, or just about 2% of total daily crypto trading volumes, as reported by CoinGecko.

Some studies indicate that wash trading makes up a bigger share of the crypto market.

In 2022, the US National Bureau of Economic Research reported that illegal wash trading may account for as much as 70% of average trading volumes on unregulated exchanges.

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