As if the government’s “stop the boats” policy wasn’t already in disarray, now James Cleverly’s crackdown on legal migration is already unravelling.
In a move cynically timed to avoid a backlash from MPs, he has admitted he’s made a major climbdown on workers bringing family members from overseas to the UK.
When he announced plans in early December to cut legal migration by 300,000, he boasted it was “a crackdown on those who jump the queue to exploit our immigration system”.
One of his most controversial proposals was that from next spring only people earning more than £38,700 would be able to bring a family member from overseas, more than double the current £18,600.
The Cleverly climbdown comes after campaigners claimed the proposed threshold was “cruel and inhumane”, since it would split up families, and this week announced plans for legal action to overturn it.
It’s Mr Cleverly’s first climbdown as home secretary and was revealed just hours after he told guests at a Christmas reception: “I’m enjoying this much, much, much more than I was expecting.”
Is it the first of many retreats by Mr Cleverly on tackling migration, both legal and illegal? Almost certainly. After all, he faces a potentially bruising battle with right-wing Tory MPs over his Rwanda bill in the new year.
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The Liberal Democrats called this climbdown a U-turn, which is not quite right because Mr Cleverly is not scrapping his proposed increase in the minimum income requirement altogether.
But the party’s pugnacious home affairs spokesman Alistair Carmichael was scathing, declaring: “You have to wonder who is in charge at the Home Office, or if anyone is.
“It was clear to everyone else that the raising of the earnings threshold was unworkable. This was yet another half-thought-through idea to placate the hardliners on their own backbenches.”
And in a reference to Denis Healey’s first law of politics, Mr Carmichael had this advice for the home secretary: “James Cleverly needs to put down the spade and stop digging.”
Labour’s Yvette Cooper says the climbdown is “more evidence of Tory chaos on immigration” and claims Mr Cleverly is “rowing back in a rush”. And it certainly looks like a hasty, panic retreat.
It’s also doubtful whether Mr Cleverly will heed Healey’s advice of when you’re in a hole, stop digging, however. He’s under massive political pressure from Tory MPs to curb legal migration and stop the boats.
But this sneaky attempt to avoid his backbenchers’ fury suggests he lacks the guts to announce his climbdown and face his Tory critics or opposition MPs in the House of Commons.
Mr Cleverly also told his party guests that being home secretary was a “massive adrenaline rush” and claimed he is a “success-orientated person”.
Really? After less than six weeks in the job, this climbdown is not a good start. In fact, it doesn’t look very Cleverly.
With US President Donald Trump threatening to sue the BBC, how likely is the broadcaster to pay out? And how have those across the political spectrum been reacting?
And with 15 days until Chancellor Rachel Reeves’s budget, Matthew McGregor – the chief executive of campaign group 38 Degrees and a former digital strategist for both Labour and Barack Obama – takes issue with Sam’s take from yesterday and sends in a voice note.
And Sam and Anne discuss the latest twist in the Your Party saga, and it’s all about money.
Brazil’s central bank completed rules that bring crypto companies under banking-style oversight, classifying stablecoin transactions and certain self-custody wallet transfers as foreign-exchange operations.
Under Resolutions 519, 520 and 521, published Monday, the Banco Central do Brasil (BCB) established operational standards and authorization procedures for what it calls Sociedades Prestadoras de Serviços de Ativos Virtuais (SPSAVs), a new category of licensed virtual-asset service providers operating in the country.
The framework extends existing rules on consumer protection, transparency and Anti-Money Laundering (AML) to crypto brokers, custodians and intermediaries.
The rules will take effect on Feb. 2, 2026, with mandatory reporting for capital-market and cross-border operations set to begin on May 4, 2026.
Stablecoins under foreign exchange rules
Under Resolution 521, a purchase, sale or exchange of fiat-pegged virtual assets, including international transfers or payments using such assets, will be treated as foreign-exchange (FX) operations.
With this classification, stablecoin activity will be subject to the same scrutiny as cross-border remittances or currency trades.
Licensed FX institutions and the new SPSAVs will be able to perform these operations, subject to documentation and value limitations. According to the BCB, transactions with unlicensed foreign counterparts will be capped at $100,000 per transfer.
The rules also cover transfers to and from self-custodied wallets when intermediated by a service provider. This means that providers must identify the wallet’s owner and maintain their processes that verify the origin and destination of the assets, even if the transfer itself isn’t cross-border.
This provision extends AML and transparency obligations to areas previously considered outside the scope of regulated finance.
While the rules don’t explicitly ban self-custody, they close a key reporting gap, forcing regulated exchanges and brokers to treat wallet interactions like formal FX operations.
BCB says the goal is to promote efficiency and legal certainty
In the announcement, the BCB said its goal is to ensure “greater efficiency and legal certainty,” prevent regulatory arbitrage and align crypto activities with the country’s balance-of-payments (BoP) statistics, which means making stablecoin transfers visible in official financial data.
The move follows months of public consultation and growing concern from the central bank on the dominance of stablecoin use in Brazil. On Feb. 7, BCB President Gabriel Galipolo said that around 90% of crypto activity in Brazil involved stablecoins, mainly used for payments.
Galipolo said the widespread use of stablecoins in payments presented regulatory and oversight challenges, particularly in areas such as money laundering and taxation.
Brazil’s central bank said the new framework aims to curb scams and illicit activity while providing legal clarity to crypto markets.
For crypto builders, this may raise compliance costs and reshape how local platforms interact with global liquidity. Smaller crypto players will be forced to compete with bigger institutions and meet more stringent banking-grade standards.
The rules will take effect in February 2026, but market participants are expected to start restructuring before then.
For Brazil, where crypto activity is second only to Argentina in Latin America, the new regulations signal a decisive shift from experimentation to integrated oversight.
The new rules show that crypto is welcome in the Brazilian financial ecosystem, but it will have to play by the same rules as fiat money.
Institutional investors are maintaining confidence in digital assets despite a sharp market correction in October, with most planning to expand their exposure in the months ahead, according to new research.
Over 61% of institutions plan to increase their cryptocurrency investments, while 55% hold a bullish short-term outlook, Swiss crypto banking group Sygnum said in a report released on Tuesday. The survey covered 1,000 institutional investors globally.
Roughly 73% of surveyed institutions are investing in crypto due to expectations of higher future returns, despite the industry still recovering from the record $20 billion market crash at the beginning of October.
However, investor sentiment continues facing uncertainty due to delays in key market catalysts, including the Market Structure bill and the approval of more altcoin exchange-traded funds (ETFs).
While this uncertainty may carry over into 2026, Sygnum’s lead crypto asset ecosystem researcher, Lucas Schweiger, predicts a maturing digital asset market, where institutions seek diversified exposure with long-term growth expectations.
“The story of 2025 is one of measured risk, pending regulatory decisions and powerful demand catalysts against a backdrop of fiscal and geopolitical pressures,” he said, adding:
“But investors are now better informed. Discipline has tempered exuberance, but not conviction, in the market’s long-term growth trajectory.”
Despite October’s correction, “powerful demand catalysts” and institutional participation remained at an all-time high, with the growing ETF applications signaling more institutional demand, added Schweiger.
Crypto staking ETFs may be the next institutional catalyst
Crypto staking ETFs may present the next fundamental catalyst for institutional cryptocurrency demand.
Over 80% of the surveyed institutions expressed interest in crypto ETFs beyond Bitcoin (BTC) and Ether (ETH), while 70% stated that they would start investing or increase their investments if these ETFs offered staking rewards.
Staking means locking your tokens into a proof-of-stake (PoS) blockchain network for a predetermined period to secure the network and earn passive income in exchange.
Meanwhile, investors are now anticipating the end of the government shutdown, which could bring “bulk approvals” for altcoin ETFs from the US Securities and Exchange Commission, catalyzing the “next wave of institutional flows,” according to Sygnum.