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The “routine” housing of unaccompanied child asylum seekers in hotels by the Home Office is unlawful, the High Court has ruled.

The charity, Every Child Protected Against Trafficking (ECPAT), brought legal action against the Home Office over the practice of housing unaccompanied youngsters in Home Office hotels – claiming the arrangements are “not fit for purpose”.

In his ruling, Mr Justice Chamberlain said the use of hotels for unaccompanied asylum-seeking children has become unlawful.

He told the court the power to place children in hotels “may be used on very short periods in true emergency situations”.

The judge added: “It cannot be used systematically or routinely in circumstances where it is intended, or functions in practice, as a substitute for local authority care.”

He said the use of hotels cannot be seen as an “emergency” measure given the length of their use.

“From December 2021 at the latest, the practice of accommodating children in hotels, outside local authority care, was both systematic and routine and had become an established part of the procedure for dealing with unaccompanied asylum-seeking children,” the judge said.

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“From that point on, the home secretary’s provision of hotel accommodation for unaccompanied asylum-seeking children exceeded the proper limits of her powers and was unlawful.

“There is a range of options open to the home secretary to ensure that unaccompanied asylum-seeking children are accommodated and looked after as envisaged by parliament. It is for her to decide how to do so.”

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Home Secretary Suella Braverman during her speech in Westminster, London, for the launch of counter-terrorism strategy Contest 2023, which has been updated for the first time in five years. Picture date: Tuesday July 18, 2023. PA Photo. See PA story POLITICS Terrorism. Photo credit should read: Jordan Pettitt/PA Wire
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Home Secretary Suella Braverman’s provision of hotels for asylum-seeking children ‘was unlawful’, the judge ruled

Kent County Council acting unlawfully in failing to accommodate children

ECPAT’s bid was heard in London alongside similar claims brought by Brighton and Hove City Council and Kent County Council against the department.

The Home Office and Department for Education had opposed the legal challenges and said the hotel use was lawful but was “deployed effectively as a ‘safety net’ and as a matter of necessity”.

As well as finding the Home Office’s use of hotels to house child asylum seekers unlawful, the judge said Kent County Council is acting unlawfully in failing to accommodate and look after unaccompanied asylum-seeking children.

He said: “In ceasing to accept responsibility for some newly arriving unaccompanied asylum seeking children, while continuing to accept other children into its care, Kent County Council chose to treat some unaccompanied asylum seeking children differently from and less favourably than other children, because of their status as asylum seekers.”

The court heard at the time of the hearing in the claims earlier this month, 154 children remained missing from the hotels, including a 12-year-old.

The judge said: “Neither Kent County Council nor the home secretary knows where these children are, or whether they are safe or well. There is evidence that some have been persuaded to join gangs seeking to exploit them for criminal purposes.

“These children have been lost and endangered here, in the United Kingdom. They are not children in care who have run away. They are children who, because of how they came to be here, never entered the care system in the first place and so were never ‘looked after’.”

The judge added: “Ensuring the safety and welfare of children with no adult to look after them is among the most fundamental duties of any civilised state.”

Patricia Durr, chief executive of ECPAT, said following the ruling: “It remains a child protection scandal that so many of the most vulnerable children remain missing at risk of significant harm as a consequence of these unlawful actions by the Secretary of State and Kent County Council.”

A Home Office spokesperson said: “The High Court has upheld that local authorities have a statutory duty to care for unaccompanied asylum-seeking children. We have always maintained that the best place for unaccompanied children to be accommodated is within a local authority.

“However, due to the unsustainable rise in illegal Channel crossings, the government has had no option but to accommodate young people in hotels on a temporary basis while placements with local authorities are urgently found.”

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Circle gets Abu Dhabi greenlight amid UAE stablecoin and crypto push

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Circle gets Abu Dhabi greenlight amid UAE stablecoin and crypto push

Stablecoin issuer Circle has secured regulatory approval to operate as a financial service provider in the Abu Dhabi International Financial Center, deepening its push into the United Arab Emirates.

In an announcement Tuesday, Circle Internet Group said it received a Financial Services Permission license from the Financial Services Regulatory Authority of the Abu Dhabi Global Market (ADGM), the International Financial Centre of Abu Dhabi. This allows the stablecoin issuer to operate as a Money Services Provider in the IFC.

The USDC (USDC) issuer also appointed Saeeda Jaffar as its managing director for Circle Middle East and Africa. The new executive also serves as a senior vice president and group country manager for the Gulf Operation Council at Visa and will be tasked with developing the stablecoin issuer’s regional strategy and partnerships.

Circle co-founder, chairman and CEO Jeremy Allaire said that the relevant regulatory framework “sets a high bar for transparency, risk management, and consumer protection,” adding that those standards are needed if “trusted stablecoins” are going to support payments and finance at scale.

UAE, Circle, Stablecoin
Source: Circle

Related: Abu Dhabi Investment Council triples stake in Bitcoin ETF in Q3: Report

Abu Dhabi awards a wave of licenses

The ADGM has recently awarded licenses for financial operations to a wave of crypto companies. Earlier this week, Tether’s USDt (USDT) — the largest stablecoin by circulation and Circle’s top competitor — secured a regulatory milestone in Abu Dhabi’s international financial center, as did Ripple’s dollar-pegged stablecoin Ripple USD at the end of November.

On Monday, crypto exchange Binance was granted three separate licenses from Abu Dhabi’s financial regulator, allowing it to operate its exchange, clearing house and broker-dealer services. This followed its competitor Bybit receiving regulatory approval in the UAE in early October.

Related: HSBC to bring tokenized deposits to US and UAE as stablecoin race heats up

UAE bets on crypto

The Central Bank of the UAE has been actively reviewing its cryptocurrency regulations. In November, it introduced rules for decentralized finance (DeFi) and the broader Web3 industry.

The newly introduced Federal Decree Law No. 6 of 2025 brings DeFi platforms, related services and infrastructure providers under the scope of regulations if they enable payments, exchange, lending, custody, or investment services, with licenses now required. Local crypto lawyer Irina Heaver said that “DeFi projects can no longer avoid regulation by claiming they are just code.”

Heaver told Cointelegraph at the end of 2024 that during that year the country cemented its status as a global crypto hub.

In October 2024, the UAE exempted cryptocurrency transfers and conversions from value-added tax, just a month after Dubai’s digital asset regulator announced stricter rules on crypto marketing. Around the same time, local free economic zone Ras Al Khaimah Digital Assets Oasis was also working to introduce a legal framework for decentralized autonomous organizations.

Local regulators were not shy about enforcing the rules, with Dubai’s Virtual Assets Regulatory Authority cracking down on seven unlicensed crypto businesses, issuing fines and cease-and-desist orders.

Magazine: Review: The Devil Takes Bitcoin, a wild history of Mt. Gox and Silk Road