What is the new Rwanda plan and why is it controversial?
Rishi Sunak has introduced emergency legislation in a bid to salvage his embattled Rwanda asylum plan and deliver on his pledge to “stop the boats”.
The goal is to ensure those not entering the UK by legal means face being sent on a one-way trip to the east African country.
But last month, the Supreme Court ruled the policy unlawful and could not go ahead as it was, concluding there was a real risk genuine refugees sent to Rwanda could be returned to their home country, where they would face “ill-treatment”.
In a bid to address the concerns, Home Secretary James Cleverly travelled to the country’s capital Kigali to sign a fresh deportation treaty before setting out the details of a proposed bill, which faces its first parliamentary test on Tuesday.
What is the latest Rwanda plan?
It is made up of two parts, aimed at making the deal legally watertight and so avoiding further setbacks, which have so far blocked all deportation flights amid soaring costs of the stalled policy.
The treaty, which needs to be ratified by the UK and Rwandan parliaments to make it internationally binding, centres on providing assurances to the Supreme Court that asylum seekers sent to Rwanda will not be removed and sent to another country where they face persecution.
As part of this, a new appeals process will be established to deal with exceptional cases, such as if someone living in the country under the scheme commits a crime.
British and Commonwealth judges, as well as Rwandan judges, will preside over the appeal hearings and decide whether the individual remains in Rwanda or is sent back to the UK.
Meanwhile, the legislation is designed to enable parliament to confirm Rwanda is a “safe country”.
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Rwanda scheme ‘will do the job’
In a bid to reduce the scope for domestic court hold-ups, the legislation gives ministers the powers to disregard sections of the Human Rights Act, but does not go as far as allowing them to dismiss the European Convention on Human Rights (ECHR).
The UK was among the first to ratify the international treaty which commits its 46 signatories to abide by rules on rights to life, liberty and expression, and protection from torture, degrading treatment and slavery.
It is not linked to the European Union, so Brexit did not affect the UK’s obligations.
Why does this matter?
Because Tory hardliners argue without making the Safety of Rwanda (Asylum and Immigration) Bill more robust and allowing ministers to ignore asylum rulings by both domestic judges and the European Court of Human Rights, which makes binding judgments on the convention, the policy is destined to fail.
It led to the resignation of immigration minister Robert Jenrick, who argued the legislation was “a triumph of hope over experience”.
At the same time, centrist Conservative MPs are insisting the government respects the rule of law and the UK’s international obligations.
The public divisions causes a further headache for Mr Sunak as he seeks to take the legislation through parliament and reassert his authority over fractious backbenchers.
Read more:
Whatever happens in Rwanda vote, PM is in deep trouble
What is the European Court of Human Rights?
As well as differing positions on the ECHR, the Conservatives’ poor showing in the polls has heightened the tensions within the party.
A number of Tory MPs believe reducing immigration, and particularly ending the scenes of asylum seekers arriving on Kent’s beaches, will be key to narrowing Labour’s lead and want to see the government do everything possible to achieve that.
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‘My patience has worn thin, right?’
Although the government argues the proposed bill goes as far as it can as the Rwandan government will pull out of a deal that involves leaving the ECHR altogether, ministers have hinted at compromises with rebels.
Is party infighting the only problem facing the government?
No. As well as having to navigate the bill through the Commons, it also has to clear the House of Lords, where the Tory administration does not have a majority.
Any move to relax human rights safeguards are likely to encounter stiff opposition, not least among the many leading lawyers who sit on the red benches.
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The inability of the home secretary to guarantee the proposed law is compatible with the ECHR will only fuel concerns.
As the Rwanda plan was not a manifesto commitment, critics in the unelected chamber will also argue the usual convention of not delaying the delivery of an election pledge does not apply.
With an upcoming election, the timing also means the government cannot use powers under the Parliament Act to force through the legislation.
Despite the ongoing market meltdown on US trade tariffs, executives at major cryptocurrency firms Messari and Sygnum are bullish on institutional Bitcoin adoption later in 2025.
Speaking on a panel at Paris Blockchain Week on April 8, Messari CEO Eric Turner and Sygnum Bank co-founder Thomas Eichenberger said they expect a significant shift in the banking sector’s involvement with crypto in the second half of the year.
According to the executives, the global banking push into Bitcoin (BTC) services has great potential to happen in the second half of 2025 as regulators embrace crypto, including stablecoins and crypto services by banks.
“I think we’re probably looking at a muted Q2, but I’m really excited for Q3 and Q4,” Messari’s Turner said during the panel discussion moderated by Cointelegraph CEO Yana Prikhodchenko, forecasting “really interesting” things coming to the crypto market in 2025.
Crypto adoption is not just about Trump
While some investors focus on the pro-crypto stance of US President Donald Trump, Turner emphasized that broader regulatory momentum is what matters most.
“When you look at the potential of having market structure regulation in the US, stablecoin regulation, and just the fact that across the board, not just President Trump himself, but the SEC and all these regulatory industries are really embracing crypto,” Turner said.
Paris Blockchain Week’s panel with Cointelegraph CEO Yana Prikhodchenko, Bancor co-founder Eyal Hertzog, Sygnum co-founder Thomas Eichenberger, Messari CEO Eric Turner, AWS fintech leader Alex Matsuo and Near chief operating officer Chris Donovan. Source: Cointelegraph
Sygnum co-founder Thomas Eichenberger said international banks with US branches are also poised to enter the market once the legal landscape becomes clearer:
“I think it’s a matter of fact that US banks are preparing to be able to offer crypto custody and at least crypto spot trading services anytime soon.”
“I think by then I would agree with you, Eric,” he continued, projecting a continued phase of market uncertainty until the US establishes a clear regulatory framework.
Related: Ripple acquires crypto-friendly prime broker Hidden Road for $1.25B
Banks are no longer afraid of Bitcoin regulators
With the establishment of clear crypto rules for banks in the US, there will be a rush for crypto services by large international banks that are incorporated outside of the US but have a US-based presence, Eichenberger said.
“Some of them may have had their strategic plans in their cupboard to offer crypto-related services, but have been afraid that at some point they will be gone after by any of the US regulatory authorities,” he said, adding:
“Now I think there’s no one to be afraid of anymore in terms of regulatory authorities worldwide. So I think many of the large international banks will launch this year.”
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Global trade tensions triggered by US President Donald Trump’s sweeping tariff measures may come to an end with a potential deal with China as investors remain concerned about escalation from both sides.
Trump’s April 2 announcement of reciprocal import tariffs sent shockwaves through global equity and crypto markets. The measures include a 10% baseline tariff on all imported goods, effective April 5, with higher levies — such as a 34% tariff on Chinese imports — set to begin on April 9.
However, the tariff negotiations may only be “posturing” for the US to reach an agreement with China, according to Raoul Pal, founder and CEO of Global Macro Investor.
“In the end, almost all the other tariff negotiations and rhetoric are all about getting China to agree a deal,” Pal wrote in an April 8 X post, adding:
“That is the big prize and both China and the US understand it and need it. Everything else is negotiation posturing. China needs a weaker $ and the US needs tariffs.”
Source: Raoul Pal
“Also, the US is trying to shut down China tariff arbitrage using other channels such as Mexico or Vietnam,” Pal said.
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China retaliates with new tariffs
Considering China’s latest retaliatory measures, a resolution remains unlikely in the short term.
In response to US tariffs, China imposed a 34% tariff on all US imports effective April 10, media outlet Xinhua News reported on April 4. China’s foreign ministry also vowed to “fight till the end” against Trump’s tariffs, which it called “bullying” by the world’s largest economy.
China overtakes the US in global trade. Source: Econovis
China overtook the US in 2012 to become the world’s largest trading nation by the total value of exports and imports, surpassing $4 trillion in goods trade that year, according to The Guardian.
Crypto markets watch trade outcome closely
As the trade dispute continues to evolve, analysts say a potential agreement between the two global superpowers could serve as a key catalyst for recovery in digital asset markets.
Crypto markets have a 70% chance to bottom by June 2025 before recovering, Nansen analysts predicted.
Related: Crypto market bottom likely by June despite tariff fears: Finance Redefined
Investor appetite for risk assets such as Bitcoin will depend on the global tariff responses from other countries, according to Nicolai Sondergaard, a research analyst at Nansen.
“We have reached somewhat of a local bottom in regard to tariffs and the impact on prices,” the analyst said during Cointelegraph’s Chainreaction live show on X, adding:
“Trump came out guns blazing, and we’ve mostly seen the worst from the US side, so we’ll see if other countries are willing to drop some of the tariffs because it’s very likely the US will do the same.”
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A Nigerian court has reportedly delayed the country’s tax evasion case against Binance until April 30 to give time for Nigeria’s tax authority to respond to a request from the crypto exchange.
Reuters reported on April 7 that a lawyer for Binance, Chukwuka Ikwuazom, asked a court the same day to invalidate an order allowing for court documents to be served to the company via email.
Binance doesn’t have an office in Nigeria and Ikwuazom claimed the Federal Inland Revenue Service (FIRS) didn’t get court permission to serve court documents to Binance outside the country.
“On the whole the order for the substituted service as granted by the court on February 11, 2025 on Binance who is … registered under the laws of Cayman Islands and resident in Cayman Islands is improper and should be set aside,” he said.
FIRS sued Binance in February, claiming the exchange owed $2 billion in back taxes and should be made to pay $79.5 billion for damages to the local economy as its its operations allegedly destabilized the country’s currency, the naira, which Binance denies.
It also reportedly alleged that Binance is liable to pay corporate income tax in Nigeria, as it has a “significant economic presence” there, with FIRS requesting a court order for the exchange to pay income taxes for 2022 and 2023, plus a 10% annual penalty on unpaid amounts along with a nearly a 27% interest rate on the unpaid taxes.
Nigeria’s legal history with Binance
In February 2024, Nigeria arrested and detained Binance executives Tigran Gambaryan and Nadeem Anjarwalla on tax fraud and money laundering charges. The country dropped the tax charges against both in June and the remaining charge against Gambaryan in October.
Tigran Gambaryan (right) was seen in a September video struggling to walk into a courtroom in the Nigerian capital of Abuja. Source: X
Anjarwalla managed to slip his guards and escape Nigerian custody to Kenya in March last year and is apparently still at large.
Related: Binance exec shares details about release from Nigerian detention
Gambaryan, a US citizen, returned home in October after reports suggested his health had deteriorated during his detainment with reported cases of pneumonia, malaria and a herniated spinal disc that may need surgery.
Binance stopped its naira currency deposits and withdrawals in March 2024, effectively leaving the Nigerian market.
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