Brexit: ‘We don’t want to diverge’ from EU, says Sir Keir Starmer

Published

2 years ago

September 22, 2023

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Sir Keir Starmer has declared “we don’t want to diverge” from EU rules in footage of a conference of centre-left leaders in Canada seen by Sky News.

The Labour leader went beyond his usual cautious formulations on Britain’s relationship with the EU at an event on Saturday alongside the Norwegian prime minister, Jonas Gahr Store.

Sir Keir argued that Britain’s relationship with the EU could be much stronger, while still remaining outside the bloc and outside the single market, “the more we share a future together”.

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The comments surprised EU diplomats, who believe they are significant.

Leading expert Charles Grant, director of the Centre for European Reform, said that the comments go further than what Sir Keir has said previously, and that Brexiteers might question the point of leaving the EU if the UK does not significantly deregulate.

This is likely to trigger a discussion about the nature of a relationship with the EU and questions from some about whether Britain can maximise the advantages of Brexit if it is largely following EU rules.

The comments are likely to be welcomed by some businesses who do not want to have to operate under multiple sets of rules. However, others who feel held back by EU bureaucracy are set to be disappointed.

The remarks were made on Saturday evening. Sir Keir was responding to a question from John McTernan, a former aide to Sir Tony Blair, at a conference for progressive leaders in Montreal.

“Most of the conflict with the UK being outside of the UK [sic] arises in so far as the UK wants to diverge and do different things to the rest of our EU partners,” the Labour leader said.

“Obviously the more we share values, the more we share a future together, the less the conflict. And actually different ways of solving problems become available.

“Actually we don’t want to diverge, we don’t want to lower standards, we don’t want to rip up environmental standards, working standards for people that work, food standards and all the rest of it.

“So suddenly, you’re in a space where, notwithstanding the obvious fact that we’re outside the EU and not in the [European Economic Area], there’s a lot more common ground than you might think.”

He said there were a lot of shared values and history with the EU, and that on security issues, and NATO, it was good that the conflict in Ukraine brought institutions together – “that has created a wider space in Europe for a discussion.”

Last week, Sir Keir shut down speculation he might join an EU quota system on migrants after he said he would talk to the bloc about a migrant returns deal.

These comments go much further than Sir Keir went in an interview with the Financial Times on Monday, when he reconfirmed that he would negotiate a better deal with the EU.

Almost everyone recognises the deal Boris Johnson struck is not a good one – “it’s far too thin”, Sir Keir said in an interview, adding: “As we go into 2025 we will attempt to get a much better deal for the UK.”

Mr Grant, who is one of the foremost experts in UK and EU relations, said the comments were new.

“I think if Keir Starmer wants to get the best deal with the prime minister, he’s going to have to prepare the ground, which is why he saw Emmanuel Macron last week, why he probably said some comments when he was in Montreal that were quite interesting,” he said.

“Because he’s trying to soften up the other world leaders, so they know what to expect when he becomes prime minister if he does.”

Next week, Mr Grant and the CER think tank will publish “a European strategy for Labour.”

Asked if he was surprised by Sir Keir’s comments, he said: “I don’t know whether it was intended or not, and maybe it just slipped out late on the Saturday evening.

“The fact that he hasn’t said anything quite similar in the UK is perhaps telling. Maybe what he thinks is that we shouldn’t diverge too much with the EU because he understands instinctively that it’s actually bad for businesses.”

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Asked if keeping EU rules would undermine the rationale of Brexit, Grant replied: “I think that some of the Brexiteers have a point.

“The only economic case really that backs up Brexit is the idea of Singapore-on-Thames. The idea that if you do leave the EU, you are free to have your own rules.”

Sky News approached Labour HQ ahead of publication.

“We’ve left the European Union and we’re not going back in any form,” a party spokesperson said.

“We don’t support dynamic alignment. We’re not joining the single market or the customs union. We will not be in a situation where we are a rule taker.

“Any decisions on what standards we follow will be made in the UK parliament.

“The Tories have not used Brexit to diverge on food, environmental or labour standards and if they have a plan to do so then they should come clean with people.”

Politics

Australian regulator asks High Court to allow appeal in Block Earner case

Published

4 hours ago

May 22, 2025

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Australian regulator asks High Court to allow appeal in Block Earner case

Australia’s financial regulator will seek the High Court’s permission to appeal a lower court’s ruling favoring fintech firm Block Earner, which found the company’s crypto-linked fixed-yield earning service is not a financial product.

The Australian Securities and Investment Commission said on May 21 that it wants to ask the High Court of Australia to clarify what the definition of a financial product is and clarify the circumstances when an interest-earning product and the conversion of assets from one form to another are regulated.

“The definition of financial product was drafted in a broad and technology-neutral way, and ASIC believes it is in the public interest to clarify this,” the watchdog said.

“This clarification is important as it applies to all financial products and services whether they involve crypto-assets or not.”

On April 22, Federal Court Justices David O’Callaghan, Wendy Abraham and Catherine Button found that Block Earner’s crypto-linked fixed-yield earning product is not a financial product, a managed investment scheme or a derivative under the Corporations Act.

ASIC said the court will consider its application. Special leave is required in an appeal to the High Court, and it’s only granted in cases where it would answer significant legal questions or matters of public interest.

A Block Earner spokesperson told Cointelegraph the matter has now escalated to a “broader legal question” around the definition of a financial product, which extends “well beyond Block Earner, and the crypto sector.”

“We believe the Full Federal Court’s April ruling was a strong and well-reasoned decision that upheld the integrity of our operations,” the spokesperson said. “We remain confident in the soundness of that judgment and will respond to ASIC’s application through the appropriate legal channels.”

Legal saga ongoing since 2022

ASIC first launched legal proceedings against Block Earner in November 2022, arguing the company needed a financial services license to offer its yield product, which was available from March 17, 2022, until the company shut it down on Nov. 16, 2022.

In February 2024, an Australian court initially ruled the fintech firm would need a financial services license to operate its crypto yield-bearing products.

Another June 2024 ruling in Australia’s Federal Court released Block Earner from any financial penalties because it had “acted honestly” and pursued its legal opinions before launching the products, which ASIC appealed.

Block Earner appealed the Federal Court’s decision that it needed a financial services license on July 9, 2024.

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VanEck to launch Avalanche ecosystem fund

Published

6 hours ago

May 21, 2025

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VanEck to launch Avalanche ecosystem fund

VanEck plans to launch a private digital assets fund in June targeting tokenized Web3 projects built on the Avalanche blockchain network, the asset manager said in a statement shared with Cointelegraph.

The VanEck PurposeBuilt Fund, available only to accredited investors, aims to invest in liquid tokens and venture-backed projects across Web3 sectors, including gaming, financial services, payments, and artificial intelligence.

Idle capital will be deployed into Avalanche (AVAX) real-world asset (RWA) products, including tokenized money market funds, VanEck said.

The fund will be managed by the team behind VanEck’s Digital Assets Alpha Fund (DAAF), which oversees more than $100 million in net assets as of May 21.

“The next wave of value in crypto will come from real businesses, not more infrastructure,” Pranav Kanade, portfolio manager for DAAF, said in a statement.

Thematic crypto funds

VanEck’s PurposeBuilt Fund is the latest in a series of funds from the asset manager and rivals designed to offer exposure to projects and companies in fast-growing segments of Web3.

On May 14, VanEck launched a new actively managed exchange-traded fund (ETF) to invest in stocks and financial instruments providing exposure to the digital economy.

In April, VanEck launched another ETF investing in a passive index of companies operating in the crypto space.

Asset managers such as VanEck are requesting the US Securities and Exchange Commission’s (SEC) permission to list upward of 70 crypto ETFs.

The wave of ETF filings is in response to US President Donald Trump softening the agency’s regulatory stance toward crypto after Trump took office in January.

Avalanche RWA ecosystem

Avalanche has emerged as a hub for real-world assets (RWAs) and other institutional-oriented crypto projects.

Its interrelated networks, called subnets, allow institutions to run Ethereum-style smart contracts in a controlled environment. On May 16, Solv Protocol launched a yield-bearing Bitcoin token on the Avalanche blockchain, targeting institutional investors

Avalanche has around $1.5 billion in total value locked (TVL) as of May 21, according to data from DefiLlama.

“We’re seeing a shift away from speculative hype toward real utility and sustainable token economies,” John Nahas, chief business officer at Ava Labs, said in a statement.

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Politics

US lawmaker reintroduces bill amid pushback on Trump’s crypto ties

Published

7 hours ago

May 21, 2025

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<div>US lawmaker reintroduces bill amid pushback on Trump's crypto ties</div>

A Democratic representative in the US Congress will support a blockchain bill at a time when many left-leaning lawmakers are blocking crypto-related pieces of legislation due to concerns with President Donald Trump’s potential conflicts of interest.

In a May 21 notice, Minnesota Representative Tom Emmer said he had reintroduced the Blockchain Regulatory Certainty Act, a bill that “solidifies that digital asset developers and service providers that do not custody consumer funds are not money transmitters.”Emmer, a Republican, said Democratic Representative Ritchie Torres would co-lead the bill, making it a bipartisan effort in Congress.

“The Blockchain Regulatory Certainty Act reflects a thoughtful, bipartisan effort to get digital asset policy right,” said Torres. “While similar language was voted down in markup last Congress, we took that feedback seriously and returned with a smarter, sharper framework that protects innovation without compromising oversight.”

Cryptocurrencies, Law, Politics, Congress — *Reintroducing the Blockchain Regulatory Certainty Act on May 21. Source:* *Tom Emmer*

Representatives of advocacy organizations, including the Crypto Council for Innovation, Solana Policy Institute, Digital Chamber, Coin Center, DeFi Education Fund and Blockchain Association, said they would support the proposed blockchain regulatory bill. It was unclear whether Emmer and Torres had a majority of votes in the House of Representatives for the legislation to pass.

Torres has supported many bills and policies favorable to the crypto industry since assuming office in 2021. Together with Emmer, he has led the Congressional Crypto Caucus to advance crypto-friendly policies in the House since March.

A bipartisan blockchain bill amid memecoin concerns?

Other Democratic House members, including Representative Maxine Waters, have suggested they intend to block any legislation related to crypto and blockchain until Republicans address Trump’s connections to the industry, such as his family’s stake in World Liberty Financial and his TRUMP memecoin. The president is planning to host a dinner with up to 220 people holding the most significant amounts of his memecoin on May 22.

Cointelegraph reached out to Torres’ office for comment but had not received a response at the time of publication.

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