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The backlog of asylum claims in the UK has hit a new record high, according to Home Office figures.

A total of 175,457 people were waiting for an initial decision on an asylum application in the UK at the end of June 2023, up 44% at the end of June 2022 and the highest figure since current records began in 2010.

It means the total cost of the asylum has now reached £3.97bn a year – up by £1.85 billion in 2022/23, from £2.12 billion in 2021/22. In 2012/13, the total was £500.2 million.

The number of people waiting more than six months for an initial decision stood at 139,961 at the end of June, up 57% year-on-year from 89,231 and another record high.

In total, there were 134,046 cases being dealt with by the Home Office in relation to the 175,457 people waiting for an initial decision at the end of June 2023.

At the end of July 2023, the number of cases being handled had risen to 136,779 – but the data does not show how many people this related to.

The number of people lodging asylum claims has also risen to a two-decade high.

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Some 78,768 applications were made in the year to June 2023 – again, there can be more than one person covered by each application.

This is 19% higher than the previous 12 months, and higher than the European migration crisis, where 36,546 applications were made in a 12-month period.

Stephen Kinnock, Labour’s shadow immigration minister, said: “These new statistics set out in stark terms the complete chaos the Tories have created in the immigration and asylum system.

“The asylum backlog has reached a new record high, with 175,000 people now waiting for decisions. Only 1% of last year’s 45,000 small boats cases have received a decision and the number of failed asylum seekers being returned is also down a whopping 70% since 2010. This is a disastrous record for the prime minister and home secretary.

“With this level of mismanagement, there is very little prospect of reducing the eye-wateringly high bill for hotel rooms for all those left in limbo, currently costing the British taxpayer £6 million a day.”

There has also been a sharp rise in the number of worker visas issued in the past year compared to the previous 12 months.

The new statistics published by the Home Office also show a 63% rise in the number of people coming to the UK on work visas in the year to June 2023, compared to the year to June 2022 – meaning 538,887 arrived to work in the past year.

The number of study visas issued is up 34% to 657,208.

Both these figures include dependents brought into the UK on the programmes alongside the main visa holder.

Read more:
No job for many people arriving in UK on skilled worker visas
Plan to clamp down on illegal migration could spark ‘perma-backlog’
More than 100,000 people have crossed Channel in small boats since records began

This means that 208,295 more people came to the UK on work visas in the 12 months to June 2023 and 165,968 more people entered on study visas.

It comes despite a Tory 2019 manifesto commitment to “bring overall numbers down”.

The government has changed the law to mean that, from January 2024, people on student visas will no longer be able to bring dependents with them.

A sizeable proportion of those entering on work visas are health and care workers, for whom the government created a new pathway in 2020.

Jonathan Gullis, a Tory MP and member of the New Conservatives group, told Sky News: “I think a lot of people will rightly be concerned to see another huge rise in skilled worker visas particularly as the thresholds in education have been reduced, so we will probably be continuing to rely on cheap foreign labour into the future, whenever there is a shortage.

“We should be taking big businesses head on and forcing them to upskill young people and adults looking to retrain to develop our own workforce within the UK.

“Brexit for me was about taking back control of our borders. Not shutting off the world, that would be ludicrous, but looking in our own country and helping young people in places like the Midlands and the North to train up for these skilled jobs and deliver on our pledges from when we were elected in 2019.”

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Skilled worker visa scam

Marley Morris, the Institute for Public Policy Research’s associate director for migration, trade and communities, said: “The government is still far-off from getting on top of the asylum backlog. While the Home Office is bringing down the ‘legacy backlog’ of older cases, this is being offset by new applications from recent arrivals.

“Moreover, many of the most recent decisions by the Home Office are withdrawals rather than grants or refusals. In the long run, this could backfire on the government, as people whose applications are withdrawn end up being pushed underground or make fresh asylum claims.

“Once the government implements the Illegal Migration Act, this could make matters even worse. Even if the Rwanda scheme is ruled to be lawful by the Supreme Court, it is likely that the number of arrivals will outpace the number of removals, creating a growing ‘perma-backlog’ of asylum seekers trapped in limbo. This could cost the Home Office billions each year.”

A Home Office spokesperson said: “The unacceptable number of people risking their lives by making these dangerous crossings is placing an unprecedented strain on our asylum system.”

According to the Migration Observatory, the Home Office’s figures showed that only 41% of asylum seekers arrived by small boats – down on the previous year when it was 45% – but the overall number of applications rose.

The government spokesperson added: “Our priority is to stop the boats, and our Small Boats Operational Command is working alongside our French partners and other agencies to disrupt the people smugglers.

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“The government is going even further through our Illegal Migration Act which will mean that people arriving in the UK illegally are detained and promptly removed to their country of origin or a safe third country.”

Dr Peter William Walsh, senior researcher at the Migration Observatory at the University of Oxford said: “Political debate has been hyper-focused on small boats, 90% of whom claim asylum. Yet in the year to June 2023, small boat arrivals made up only 41% of asylum claims – the remainder will have arrived in the UK via other routes.”

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Crypto banking rule withdrawal by Fed ‘not real progress’ — Senator Lummis

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Crypto banking rule withdrawal by Fed ‘not real progress’ — Senator Lummis

Crypto banking rule withdrawal by Fed ‘not real progress’ — Senator Lummis

United States Senator Cynthia Lummis suggests the crypto industry may be celebrating too soon over the US Federal Reserve softening its crypto guidance for banks.

“The Fed withdrawing crypto guidance is just noise, not real progress,” Lummis said in an April 25 X post. Lummis called the Fed’s April 24 announcement — withdrawing its 2022 supervisory letter that had discouraged banks from engaging with crypto and stablecoin activities — “just lip service.”

Lummis’ tone was different from the rest of the crypto industry

Lummis, a pro-crypto advocate known for introducing the Bitcoin (BTC) Strategic Reserve Bill in July 2024, pointed out several flaws in the Fed’s announcement, even as Strategy founder Michael Saylor and crypto entrepreneur Anthony Pompliano suggested it was a step forward for banks and crypto.

Cryptocurrencies, United States
Source: Anthony Pompliano

She argued that the Fed continues to “illegally flout the law on master accounts” and still relies on reputational risk in its bank supervision practices. It comes as the Federal Insurance Deposit Corporation (FDIC) is working on a rule to stop examiners from considering reputational risk when reviewing a bank’s operations, according to a recent Bloomberg report.

Lummis also highlighted the Fed’s policy statement in Section 9(13), which hasn’t been withdrawn, stating that Bitcoin and digital assets are considered “unsafe and unsound.”

She also reiterated many of the same staff behind Operation Chokepoint 2.0 are still involved in crypto policy today.

“We are NOT fooled. The Fed assassinated companies within the industry and hurt American interests by stifling innovation and shuttering businesses. This fight is far from over.”

“I will continue to hold the Fed accountable until the digital asset industry gets more than a life jacket, Chair Powell — they need a fair shake,” Lummis said.

Related: If Trump fired Powell, what would happen to crypto?

Custodia Bank founder and CEO Caitlin Long seemed to share a similar view to Lummis.

“THANK YOU for seeing this for what it is,” Long said.

Cryptocurrencies, United States
Source: David Sacks

However, many crypto executives praised the Fed’s announcement as a positive development for the industry. Saylor said in an April 25 X post that the Fed’s move means that “banks are now free to begin supporting Bitcoin.”

Anastasija Plotnikova, co-founder and CEO of blockchain regulatory firm Fideum, said the Fed’s decision “is a significant development, as it will simplify the path to institutional adoption.”

Magazine: Ethereum is destroying the competition in the $16.1T TradFi tokenization race

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SEC chair suggests ‘huge benefits’ in agency’s third crypto roundtable

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<div>SEC chair suggests 'huge benefits' in agency's third crypto roundtable</div>

<div>SEC chair suggests 'huge benefits' in agency's third crypto roundtable</div>

In one of his first appearances as the recently sworn-in chair of the US Securities and Exchange Commission, Paul Atkins delivered remarks to the agency’s third roundtable discussion of crypto regulation. 

In the “Know Your Custodian” roundtable event on April 25, Atkins said he expected “huge benefits” from blockchain technology through efficiency, risk mitigation, transparency, and cutting costs. He reiterated that among his goals at the SEC would be to facilitate “clear regulatory rules of the road” for digital assets, hinting that the agency under former chair Gary Gensler had contributed to market and regulatory uncertainty. 

“I look forward to engaging with market participants and working with colleagues in President Trump’s administration and Congress to establish a rational fit-for-purpose framework for crypto assets,” said Atkins.

SEC chair suggests 'huge benefits' in agency's third crypto roundtable
SEC chair Paul Atkins addressing the April 25 crypto roundtable. Source: SEC

Some critics of US President Donald Trump see Atkins’ nomination to lead the SEC as a nod to the crypto industry, acting on campaign promises to remove Gensler — the former chair resigned the day Trump took office — and cut back on regulation. Democratic lawmakers on the Senate Banking Committee questioned Atkins on his ties to the industry, potentially presenting conflicts of interest in his role regulating crypto.

Related: Atkins SEC era sparks massive industry optimism, crypto execs speak out

The direction of the SEC under new leadership

“We’ve noticed that we don’t have to be as concerned […] about being accused of things that we’re not doing, like being broker-dealers for securities,” Exodus chief legal officer Veronica McGregor, who participated in the roundtable, told Cointelegraph on April 24.”It’s just a less scary regulatory environment in general. It is, however, still unclear what the ultimate regs are going to look like for crypto.” 

The SEC crypto task force is scheduled to hold two more roundtables in May and June to discuss tokenization and decentralized finance, respectively. Commissioner Hester Peirce, who leads the task force, told Cointelegraph in March that she welcomed the opportunity to work with Atkins to “reorient the agency,” hinting at an SEC with regulations more favorable to the crypto industry.

In addition to the roundtables, the crypto task force has reported several meetings with digital asset firms to discuss various policies and considerations in developing a regulatory framework.

Magazine: SEC’s U-turn on crypto leaves key questions unanswered

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Nasdaq urges SEC to treat certain digital assets as ‘stocks by any other name’

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<div>Nasdaq urges SEC to treat certain digital assets as 'stocks by any other name'</div>

<div>Nasdaq urges SEC to treat certain digital assets as 'stocks by any other name'</div>

Nasdaq has urged the US Securities and Exchange Commission (SEC) to hold digital assets to the same regulatory standards as securities if they constitute “stocks by any other name,” according to an April 25 comment letter. 

The exchange said the US financial regulator needs to establish a clearer taxonomy for cryptocurrencies, including categorizing a portion of digital assets as “financial securities.” Those tokens, Nasdaq argued, should continue to be regulated “as they are regulated today regardless of tokenized form.”

“Whether it takes the form of a paper share, a digital share, or a token, an instrument’s underlying nature remains the same and it should be traded and regulated in the same ways,” the letter said. 

It also proposed categorizing a portion of cryptocurrencies as “digital asset investment contracts,” to be subject to “light touch regulation” but still overseen by the SEC.

Nasdaq urges SEC to treat certain digital assets as 'stocks by any other name'
Nasdaq’s April 25 letter to the SEC. Source: Nasdaq

Related: Certain stablecoins aren’t securities, SEC says in new guidance

Regulatory U-turn

The SEC has dramatically pivoted its stance on cryptocurrency oversight since US President Donald Trump took office in January. 

Under the leadership of former Chair Gary Gensler, the SEC took the position that practically all cryptocurrencies, with the exception of Bitcoin (BTC), represent investment contracts and therefore qualify as securities. 

This stance led the agency to bring upwards of 100 lawsuits against crypto firms for alleged securities law violations.

However, under Trump nominee Paul Atkins, who was sworn in as chair on April 21 after a lengthy Senate confirmation, the SEC has claimed jurisdiction over a narrower segment of cryptocurrencies. 

In February, the agency issued guidance stating that memecoins — if clearly identified as purely speculative assets with no intrinsic value — do not qualify as investment contracts pursuant to US law. 

In April, the SEC said that stablecoins — digital tokens pegged to the US dollar — similarly do not qualify as securities if they are marketed solely as a means of making payments.

Nasdaq urges SEC to treat certain digital assets as 'stocks by any other name'
Stablecoin market overview. Source: RWA.xyz

Integrating crypto into TradFi

In its April 21 letter, Nasdaq said existing financial infrastructure “can readily absorb digital assets by establishing the proper taxonomy and calibrating certain rules to reflect what is truly new and novel about digital assets.”

The Depository Trust & Clearing Corporation (DTCC) — a private US securities clearinghouse closely overseen by the SEC — has been laying the foundation for integrating blockchain technology into regulated financial markets.

In March, the DTCC committed to promoting Ethereum’s ERC-3643 standard for permissioned securities tokens.

Magazine: Ethereum is destroying the competition in the $16.1T TradFi tokenization race

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