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Net migration hit a record-breaking 745,000 in 2022, according to revised figures from the Office for National Statistics, as its latest numbers showed 672,000 people came to the UK in the 12 months to June 2023.

In its last figures released in May, the ONS said the number for last year was 606,000 – then deemed a record high.

But looking at the numbers again, the organisation now says the actual figure was almost 140,000 higher than first thought, making it an even more unparalleled statistic.

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The latest numbers released on Wednesday showed net migration had risen when compared to the 12-month figure up to June 2022, which was 607,000, even though it was lower than the surprise annual stat for last year.

However, the ONS said while today’s number represented a drop from that unparalleled number, it was “too early to say if this is the start of a new downward trend”, even though it did indicate a slowing of immigration coupled with increasing emigration.

Net migration is calculated by looking at the number of people arriving in the UK when both immigration (people coming to the UK) and emigration (people leaving the UK) are taken into account.

More on Migrant Crisis

Tory backbenchers have already begun to hit out at the numbers, with former minister Simon Clarke saying it was “unsustainable both economically and socially” to have legal migration so high.

Another Conservative MP, Jonathan Gullis, called the figures “completely unacceptable to the majority of the British people”, and called for “drastic action”.

It comes as Prime Minister Rishi Sunak is under increasing pressure from the right of his party to reduce net migration in light of the 2019 Tory manifesto, which promised to bring the “overall number down”.

Home Secretary James Cleverly insisted the government remained “completely committed to reducing levels of legal migration, while also “focusing relentlessly” on tackling illegal migration.

He said ministers were “working across government on further measures to prevent exploitation and manipulation of our visa system, including clamping down on those that take advantage of the flexibility of the immigration system”.

But Labour’s shadow home secretary, Yvette Cooper, said today’s statistics showed “the scale of utter Tory failure on immigration, asylum, and the economy”.

Expect clamour from Tory right as Sunak seeks to strike delicate balance

It’s more bad news for the government on migration.

There are lots of headline figures coming out of the ONS figures today, but the most important one is that net migration to the UK in the year to December 2022 has been revised up to 745,000.

That is a huge number, both higher than previously thought and a new record.

In the 2019 manifesto, the Conservatives pledged to “bring overall numbers down”, with Boris Johnson talking about 250,000.

Rishi Sunak has tried to move away from specific targets, but he has put immigration, in particular illegal migration, at the heart of his pitch to the country.

Whatever complexities behind rising figures, expect a clamour from the right of the Conservative Party.

I’m told there could be an intervention from former home secretary Suella Braverman who, we understand, along with immigration minister Robert Jenrick, had previously pushed for an overall cap to net migration when she was in office.

We expect we could hear more from the Home Office about measures to bring down net migration as early as next week.

I understand this could include a crackdown on abuses in the visa system, increasing salary thresholds, changes to the rules on bringing families over on working visas and looking again at the shortage occupation scheme.

The PM knows, however, there is a delicate balance to be struck when it comes to economic concerns over workforce shortages.

The current home secretary appears to be keeping a low profile for now, but expect more on net migration over the coming weeks.

James Cleverly knows immigration matters to many voters and to his party.

In 2010, then prime minister David Cameron – now Foreign Secretary Lord Cameron – pledged to bring net migration down to the “tens of thousands”, though successive Tory governments have sought to move away from exact targets.

According to the ONS, most people arriving in the UK in the year to June 2023 were non-EU nationals – a total of 968,000 – followed by 129,000 EU citizens and 84,000 British people.

But both EU nationals and Britons were leaving the country in greater numbers, with 10,000 more EU nationals leaving than arriving and 86,000 more British nationals leaving than arriving – while the net figure for non-EU people was 768,000 more arriving than leaving.

Work was the biggest reason people from outside the EU migrated to the UK – a net figure of 278,000 and the first time employment was the most popular reason – followed by a net figure of 263,000 coming for study.

The recent rise in work visas was mainly driven by people taking jobs in the health and care sectors.

But when it came to those studying, the ONS’s Jay Lindop said the number was rising as “we’re not only seeing more students arrive, but we can also see they’re staying for longer”.

They also said more dependants of people with work and study visas had come to the UK too.

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Meanwhile, the number of people granted asylum to the UK for the year has remained relatively stable, as while it hit 88,000, compared with 73,000 in year to June 2022, ongoing COVID restrictions in that period had an impact.

The ONS said migration to the UK had been “relatively stable” before the COVID pandemic, but “patterns and behaviours have been shifting considerably since then”.

The statistics experts said net migration had “increased sharply” since 2021 due to a rise in immigration from non-EU countries – including people coming by humanitarian routes from Ukraine and Hong Kong – as well as an increase in non-EU students and workers.

Government wants to bring migration down

The government has insisted it remains committed to reducing migration, and has already introduced measures to reduce the figure, including stopping international students who come to the UK from bringing family with them except under specific circumstances.

The New Conservatives group on the Tory right has called for ministers to close temporary visa schemes for care workers and to cap the number of refugees resettling in the UK at 20,000, in a bid to reduce net migration to 226,000 by the time of the election.

Last week, the Supreme Court ruled that Mr Sunak’s policy of sending asylum seekers to Rwanda – a key part of his plan to stop small boats crossing the Channel – was unlawful.

The Rwanda policy would see anyone arriving in the UK by unauthorised means, such as by Channel crossings, deported to the African country to claim asylum there and not the UK.

But in its landmark ruling last Wednesday, the Supreme Court ruled that those sent to Rwanda would be at “real risk” of being sent back to their country of origin regardless of whether their asylum claim was justified or not – something that would breach international human rights laws.

In the aftermath of the ruling, Mr Sunak doubled down on the policy, telling MPs he was prepared to “change laws and revisit… international relationships” if they were “frustrating” his plans.

However, he also acknowledged that even if domestic laws were changed, the government could still face legal challenges from the European Court of Human Rights (ECHR) and vowed: “I will not allow a foreign court to block these flights.”

The stalemate over Rwanda has bolstered calls from some in the Tory party for the UK to withdraw from the ECHR altogether after an injunction last June stopped the first scheduled flights from taking off.

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Australian court ruling could lead to $640M in Bitcoin tax refunds

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Australian court ruling could lead to 0M in Bitcoin tax refunds

Australian court ruling could lead to 0M in Bitcoin tax refunds

A court decision in Australia could open the door to as much as $640 million in capital gains tax (CGT) refunds on Bitcoin transactions after a judge ruled that crypto should be treated as money rather than a taxable asset. 

On May 19, the Australian Financial Review (AFR) reported that the decision arose within a criminal case involving federal police officer William Wheatley, who allegedly stole 81.6 Bitcoin (BTC) in 2019. At the time, the assets were worth roughly $492,000. At current market prices, the tokens are valued at more than $13 million.

In the case, Judge Michael O’Connell of Victoria ruled that Bitcoin qualifies as a form of money rather than property, likening the digital asset to Australian dollars rather than to shares, gold or foreign currency.

The interpretation could set a legal precedent, potentially placing Bitcoin transactions outside the scope of Australia’s current CGT regime.

New court ruling challenges Australian crypto tax laws

In an AFR interview, tax lawyer Adrian Cartland said the verdict “totally upends” the Australian Taxation Office’s (ATO) current position. 

Since 2014, the ATO has classified crypto assets as CGT assets. This means that users must pay tax when selling or trading them. Under the ATO’s guidance, any disposal of Bitcoin, including selling it for fiat, exchanging it for another crypto or using it to purchase goods or services, constitutes a CGT event. 

This framework has been the basis for taxing cryptocurrency transactions in Australia for over a decade. However, the recent ruling challenges the approach by suggesting that Bitcoin functions more like money than property. This potentially exempts it from CGT.

Related: Australian feds seize mansion, Bitcoin allegedly linked to crypto exchange hack

Tax refunds could reach $640 million

Cartland said it was held that Bitcoin is Australian money. “That is, it is not a CGT asset. Therefore, acquisitions and disposals of Bitcoin have no tax consequences,” the tax lawyer added. 

If the ruling is upheld on the appeal, Cartland estimates that there could be potential tax refunds totalling 1 billion Australian dollars ($640 million). 

However, while Cartland thinks there could be up to a billion in refunds, the ATO said there were no official figures that confirm the amount to be potentially refunded if the case changes how Bitcoin is taxed in Australia. 

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Revolut eyes French license and $1.1B expansion amid EU growth

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Revolut eyes French license and .1B expansion amid EU growth

Revolut eyes French license and .1B expansion amid EU growth

Revolut, a European neobank with crypto support, plans to invest more than 1 billion euro ($1.1 billion) in France and apply for a local banking license.

According to a May 19 Fortune report, Revolut representatives announced the initiative during the Choose France business summit hosted by President Emmanuel Macron in Paris. The London-based neobank also plans to set up its new European Union-serving headquarters in Paris, promising to invest 1 billion euro and hire at least 200 people within three years.

Revolut spokespeople also said that the firm is in the process of submitting an application to the French banking regulator Prudential Supervision and Resolution Authority. According to an anonymous source cited by Fortune, the regulator has been pushing the neobank to get a license to improve supervision due to its popularity in France.

Revolut currently employs about 300 people and serves five million customers in France. This makes the nation the neobank’s top European Union market.

Related: Revolut doubles profits to $1.3B on user growth, crypto trading boom

Aiming for the stars

Revolut hopes to onboard 10 million users by the end of next year and then double that number by 2030. The firm already offers loans, trading and cryptocurrency support in its mobile-first banking platform.

The neobank has seen rapid growth ever since its founding in 2015. The company recently received a $45 billion valuation and reportedly served over 55 million customers as of late May.

Revolut’s 2024 annual report release shows that the firm’s 2024 revenue was 3.1 billion British pounds ($4 billion). A recent Financial News article also puts the company’s headcount at 10,133 employees as of Dec. 31, 2024.

Related: Revolut expands crypto exchange to 30 new markets in Europe

An increasingly regulated institution

Revolut obtained its UK banking license in late July 2024, where 11 million of its customers are located. Now, the neobank is aggressively looking to obtain similar permits across other jurisdictions, with 10 applications underway.

Revolut received the Prepaid Payment Instruments license from India’s central bank earlier this month. This license allows the bank to offer multi-currency forex cards and cross-border remittance services in India.

EU-based Revolut customers now leverage its Lithuania operations. The firm received a banking license in Lithuania at the end of 2018, enabling it to serve customers across the European Economic Area better.

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Dubai regulator sets compliance deadline for updated crypto rules

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Dubai regulator sets compliance deadline for updated crypto rules

Dubai regulator sets compliance deadline for updated crypto rules

Dubai’s crypto regulator has given licensed digital asset companies until June 19 to comply with its updated activity-based Rulebooks to enhance market integrity and risk oversight. 

On May 19, Dubai’s Virtual Assets Regulatory Authority (VARA) announced that it had released Version 2.0 of the Rulebooks. 

The regulator said it had strengthened controls around margin trading and token distribution services, harmonised compliance requirements across all licensed activities and given clearer definitions for collateral wallet arrangements. 

VARA’s team will engage with licensed entities and expects the companies to comply with the updated rules after a 30-day transition period.

“In line with global regulatory best practices, a 30-day transition period has been granted to all impacted virtual asset service providers [VASPs], with full compliance required by 19 June 2025,” VARA wrote.  

VARA enhances supervisory mechanisms

VARA highlighted that it had enhanced supervisory mechanisms across several regulated activities. This includes advisory, broker-dealer, custody, exchange, lending and borrowing, virtual asset (VA) management and investment, and VA transfer and settlement services. 

A VARA spokesperson told Cointelegraph that the updates will bring consistency across all activity-based rules defining core operational terms. The spokesperson gave examples of terms like “client assets,” “qualified custodians,” and “collateral requirements” as some of the terms more consistently defined in the update.  

The update also aligned risk management and disclosure obligations, where activities overlap, in areas like brokerage, custody and exchange.

“The aim was to reduce ambiguity and help VASPs navigate cross-functional compliance more easily,” VARA told Cointelegraph. 

Related: Dubai gov’t agencies to link real estate registry with property tokenization

Dubai regulator tightens leverage thresholds for margin trading

As for margin trading, the VARA spokesperson said they tightened leverage thresholds, mandated clearer collateralisation standards, and enhanced the monitoring obligations for VASPs offering this feature. 

Margin trading allows traders to control large positions with smaller amounts of capital. It amplifies both gains and losses. Tightening the leverage traders use helps limit the risks of widespread liquidations in a market downturn. 

The crypto regulator introduced a new section on token distribution that sets out licensing prerequisites, investor protections and marketing restrictions. The spokesperson emphasized the marketing restrictions, especially for “retail-facing offers.” 

“It’s about aligning with global conduct expectations and closing observed regulatory gaps,” the VARA spokesperson said. 

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