‘A total farce’: Labour furious as govt reveals cost of Rwanda asylum policy

Published

1 year ago

December 8, 2023

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Rishi Sunak is facing fresh pressure over his Rwanda policy after it emerged the scheme has already cost £240m, despite never being used.

The government spent a further £100m in the 2023-24 financial year while flights remained grounded amid a series of legal setbacks – on top of the £140m previously paid out.

According to a letter from the Home Office to committee chairs, ministers expect additional costs of £50m in the coming year, which would bring the total to £290m.

Politics – latest: Rwanda vote not about leadership, says Rishi Sunak

It came just hours after Mr Sunak vowed to “finish the job” of reviving his plan to deport some asylum seekers to Kigali – despite the prospect of a bitter parliamentary battle.

On the additional £100m shelled out this year, Downing Street said it was signed off by former home secretary Suella Braverman.

But those close to the sacked cabinet minister insist it was approved by the prime minister and was part of the original plan.

Downing Street has rejected any suggestion the prime minister had misled MPs over the money for Kigali insisting that the original agreement stated the deal “involves subsequent funding”.

A spokeswoman said: “It was always set out that there would be funding attached to what is an economic and migration partnership. And this further funding was part of that.”

Home Office official Matthew Rycroft wrote to Home Affairs Committee chair Dame Diana Johnson, and Public Accounts Committee chair Dame Meg Hillier, on Thursday.

His letter said: “Ministers have agreed that I can disclose now the payments so far in the 2023-24 financial year.

“There has been one payment of £100m, paid in April this year as part of the Economic Transformation and Integration Fund mentioned above.

“The UK government has not paid any more to the government of Rwanda thus far.

“This was entirely separate to the treaty – the government of Rwanda did not ask for any payment in order for a treaty to be signed, nor was any offered.”

Will it be crisis delayed rather than averted for Rishi Sunak?

Rob Powell

Political correspondent

@robpowellnews

If there’s one thing to take from the parliamentary Brexit battles of 2019, it’s that if there’s a possibility to kick the can down the road and avoid a damaging Commons defeat, the government of the day will almost always take it.

So it may prove to be next week when the Safety of Rwanda (Asylum and Immigration) Bill faces its first vote by MPs.

Torpedoing legislation at the first possible opportunity is not a usual tactic for rebel backbenchers anyway.

That’s because later stages allow the chance for changes to be put forward and compromises extracted.

The newly appointed legal migration minister signalled on Friday the government is open to discussion.

This potentially pushes the crunch moment back to early next year.

But what could the government offer to get rebels on side?

Many Tory MPs would like the “full fat” option of disregarding the European Convention on Human Rights (ECHR) in totality.

Rishi Sunak has already made it clear that is not on the table as he says it would cause Rwanda to pull out of the deal.

Some have cast doubt on that with one Tory source hostile to the prime minister saying “questions need to be asked about the statement the Rwandans have given on our country’s laws. Was it requested by number 10?”.

Junking the whole of the ECHR would undoubtedly prompt a backlash from other parts of the party though and potentially risk cabinet resignations.

A hardening of the drafting or insertion of more “notwithstanding” clauses seems more feasible.

Another tactic sometimes used in situations like these is to draw up a separate statement or memorandum re-emphasising and cementing parts of the bill that could be referred to in the legislative text.

Whether that goes far enough for MPs remains to be seen and will depend on how dogmatic and philosophical backbenchers want to be.

One final point.

Even if this bill passes the Commons, it will certainly get a rough ride in the Lords – where the Tories have no majority.

Complicating matters further is the proximity of the next election, a tight timetable the Institute for Government says makes it impossible for the prime minister to overrule peers using the Parliament Act.

Crisis delayed rather than crisis averted then and for Mr Sunak, with 2024 looking no easier than 2023.

Labour described the revelation as “incredible” – with shadow home secretary Yvette Cooper saying: “How many more blank cheques will Rishi Sunak write before the Tories come clean about this scheme being a total farce?

“Britain simply can’t afford more of this costly chaos from the Conservatives.”

But defending the growing bill, legal migration minister Tom Pursglove told Sky News: “When you consider that we are unacceptably spending £8m a day in the asylum system at the moment, it is a key part of our strategy to bring those costs down so I think this is the right investment to make that will help us achieve those objectives of saving lives at sea, stopping people drowning in the Channel, as well as getting those costs under control in a way I think taxpayers across the country want to see.”

He also signalled the government could be open to compromises with rebel Tory MPs to push through emergency legislation, which declares that Rwanda is a safe destination for asylum seekers in a bid to overcome legal obstacles.

But the bill has divided backbenchers with Conservative hardliners arguing it does not go far enough and pressing for it to effectively override international law, while MPs on the moderate side of the party are said to be “very nervous” about the implications of the proposed law.

Despite the public splits, Mr Pursglove said: “I think there is a unity of purpose among Conservative MPs that action does need to be taken that we do need to deliver on this.

“There will be parliamentary debates, there will be opportunities for people to bring amendments, the house will consider them in the normal way and as ministers we will engage constructively with parliamentarians around any concerns that they have and handle that in the way that we would any other piece of legislation.

“We will engage with colleagues around concerns that they have, but I am pretty clear that this plan is the right plan and we are determined to see it through.

“This is the right approach to move this issue forward.”

He added: “I do think parliamentarians across the House should come together to back this.

“If you really want to stop the small boat crossings, this is such a critical part of the plan I think all MPs should be getting in behind it.”

Mr Sunak has insisted his new law would end the “merry-go-round of legal challenges”.

MPs will get their first chance to debate and vote on the Safety of Rwanda (Asylum and Immigration) Bill on Tuesday.

The prime minister dismissed suggestions he will make it a confidence vote, meaning that MPs would have the whip withdrawn if they defied him.

Under the government’s plan first unveiled in April 2022, people who arrive in the UK by irregular means – such as on small boats – could be sent on a one-way trip to Rwanda, where the Kigali government would decide on their refugee status.

Politics

Deloitte predicts $4T tokenized real estate on blockchain by 2035

Published

3 hours ago

April 26, 2025

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Deloitte predicts T tokenized real estate on blockchain by 2035

Over $4 trillion worth of real estate could be tokenized on blockchain networks during the next decade, potentially offering investors greater access to property ownership opportunities, according to a new report.

The Deloitte Center for Financial Services predicts that over $4 trillion worth of real estate may be tokenized by 2035, up from less than $300 billion in 2024. The report, published April 24, estimates a compound annual growth rate (CAGR) of more than 27%.

The $4 trillion of tokenized property is predicted to stem from the benefits of blockchain-based assets, as well as a structural shift across real estate and property ownership.

Deloitte predicts $4T tokenized real estate on blockchain by 2035 — *Global tokenized real estate value, growth predictions. Source: Deloitte*

“Real estate itself is undergoing transformation. Post-pandemic work-from-home trends, climate risk, and digitization have reshaped property fundamentals,” according to Chris Yin, co-founder of Plume Network, a blockchain built for real-world assets (RWAs).

“Office buildings are being repurposed into AI data centers, logistics hubs and energy-efficient residential communities,” Yin told Cointelegraph.

“Investors want targeted access to these modern use cases, and tokenization enables programmable, customizable exposure to such evolving asset profiles,” he said.

The uncertainty triggered by US President Donald Trump’s import tariffs has boosted investor interest in the RWA tokenization sector, which involves minting financial products and tangible assets on a blockchain.

Both stablecoins and RWAs have attracted significant capital as safe-haven assets amid the global trade concerns, Juan Pellicer, senior research analyst at IntoTheBlock, told Cointelegraph.

The tariff concerns also led tokenized gold volume to surpass $1 billion in trading volume on April 10, its highest level since March 2023 when a US banking crisis saw the sudden collapse of Silicon Valley Bank and the voluntary liquidation of Silvergate Bank

Blockchain innovation could drive regulatory clarity

Growing RWA adoption may inspire a more welcoming stance from global regulators, Yin said.

“While regulation is a hurdle, regulation follows usage,” he explained, likening tokenization to Uber’s growth before widespread regulatory acceptance:

“Tokenization is similar — as demand increases, regulatory clarity will follow.”

He added that making tokenized products compliant with a wide range of international regulations is key to unlocking broader market access.

However, some industry watchers are skeptical about the benefits introduced by tokenized real estate.

“I don’t think tokenization should have its eyes directly set on real estate,” said Securitize chief operating officer Michael Sonnenshein at Paris Blockchain Week 2025.

“I’m sure there are all kinds of efficiencies that can be unlocked using blockchain technology to eliminate middlemen, escrow, and all kinds of things in real estate. But I think today, what the onchain economy is demanding are more liquid assets,” he added.

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Politics

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

Published

4 hours ago

April 26, 2025

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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.

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.

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.”

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

Published

16 hours ago

April 25, 2025

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<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.

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.

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