Stats watchdog launches investigation into government’s asylum backlog claim
The UK’s stats watchdog has launched an investigation into the government’s claim that it cleared the legacy backlog of asylum claims in 2023.
Rishi Sunak and his administration faced criticism on Tuesday for saying they had cleared all the applications to remain in the UK by asylum seekers made before 28 June 2022.
In total, 4,537 claims from the backlog still needed a decision as of Tuesday – but Mr Sunak’s spokesman said since these had been reviewed, the government considers them “cleared”.
Now, the Office for Statistics Regulation has launched an investigation into the announcement.
In total, the government had 92,000 claims to address from before June 2022 to meet the pledge made by Mr Sunak.
Numbers published by the Home Office showed that, in total, 112,138 initial asylum decisions were made between 1 January and 28 December, compared with 31,766 in all of 2022.
Some 86,800 of these decisions were for legacy cases, while, 25,338 were for non-legacy cases.
In total, 51,469 asylum applications were granted, while 25,550 were refused – meaning 67% were accepted. But it also means that 35,119 “non-substantive” decisions were made.
According to the Home Office, this is where the government withdraws the claim, it is paused, declared void or the applicant failed to complete a part of the application.
The 35,119 figure is more than two and a half times the 13,093 examples of non-substantive claims recorded in 2022.
The government has said that the remaining 4,537 more complex cases typically involve “asylum seekers presenting as children – where age verification is taking place; those with serious medical issues; or those with suspected past convictions, where checks may reveal criminality that would bar asylum”.
Read more:
Govt’s statistics make clear Sunak’s backlog claim isn’t true
Asylum backlog: Old cases nearly cleared but new ones racking up
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Govt accused of misleading public
Sky News understands the OSR probe was launched as a result of a complaint, and the initial investigations will take a number of weeks.
While the OSR can ask for additional information from the Home Office, it does not have the power to compel data to be provided. However, it could rescind its kitemark from the Home Office’s releases.
The OSR has been engaging with the Home Office over the long-term about how they use data.
In a letter responding to a complaint last year, Ed Humpherson, the director general for regulation at the OSR, said officials at the Home Office had “actively engaged” with the watchdog about the department’s data practices.
He did, however, note that while “positive developments” were made at the official level, the OSR was still “concerned that the continued misuse of these data by ministers” could “undermine public trust” in the department.
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The prime minister was also rebuked in December 2023 for claiming “debt is falling” by Sir Robert Chote, the chair of the UK Statistics Authority (UKSA).
Number 10 argued Mr Sunak was speaking about a projection which showed debt would fall as a proportion of GDP by 2028.
Sir Robert said “the average person in the street” would have interpreted the comment to mean “debt was already falling or that the government’s policy decisions had lowered it at fiscal events – neither of which is the case”.
He added: “This has clearly been a source of confusion and may have undermined trust in the government’s use of statistics and quantitative analysis in this area.”
A US federal judge has agreed to pause a lawsuit filed by 18 state attorneys general and the crypto lobby group DeFi Education Fund against the Securities and Exchange Commission after all parties said new SEC leadership could make the action moot.
Kentucky District Court Judge Gregory Van Tatenhove ordered a 60-day stay on the case on April 16, noting a mid-March filing from the SEC that “this case could potentially be resolved” due to a leadership transition at the regulator.
He added that the parties must file a joint status report within 30 days.
Paul Atkins, a Wall Street adviser who has held board positions with crypto advocacy groups, was sworn in as the new SEC chair earlier this month, replacing acting chair Mark Uyeda and taking over from Gary Gensler.
The 18 attorneys general, all hailing from Republican states, filed the lawsuit with the DeFi Education Fund against the securities regulator in November, alleging that the SEC exceeded its authority when targeting crypto exchanges with lawsuits, accusing the regulator and then-chair Gensler of “gross government overreach.”
The plaintiffs included attorneys general from Nebraska, Tennessee, Wyoming, Kentucky, West Virginia, Iowa, Texas, Mississippi, Ohio, Montana, Indiana, Oklahoma and Florida, among others.
“Without Congressional authorization, the SEC has sought to unilaterally wrest regulatory authority away from the States through an ongoing series of enforcement actions,” the lawsuit stated.
DeFi groups drop case against IRS over killed broker rule
Meanwhile, the DeFi Education Fund, Blockchain Association, and Texas Blockchain Council dropped their lawsuit against the Internal Revenue Service on April 16.
“The parties hereby stipulate to voluntary dismissal of this action without prejudice because the case has become moot,” stated the filing.
The lawsuit, filed in December, argued that the so-called IRS DeFi broker rule went beyond the agency’s authority and was unconstitutional.
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On April 11, President Donald Trump signed a bill to revoke the rule that would have required DeFi protocols to report transactions to the IRS.
It comes as the SEC has paused or dropped several high-profile lawsuits against crypto companies this year under its new leadership.
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Panama’s capital city will accept cryptocurrency payments for taxes and municipal fees, including bus tickets and permits, Panama City mayor Mayer Mizrachi announced on April 15, joining a growing list of jurisdictions globally that have voted to accept such payments.
Panama City will begin accepting Bitcoin (BTC), Ether (ETH), Circle’s USDC (USDC), and Tether’s USDt (USDT) stablecoin for payment once the crypto-to-fiat payment rails are established, Mizrachi posted on the X platform.
Mizrachi said previous administrations attempted to push through similar legislation but failed to overcome stipulations requiring the local government to accept funds denominated in US dollars.
In a translated statement, the Panama City mayor said that the local government partnered with a bank that will immediately convert any digital assets received into US dollars, allowing the municipality to accept crypto without introducing new legislation.
Panama City joins a growing list of global jurisdictions on the municipal and state level accepting cryptocurrency payments for taxes, exploring Bitcoin strategic reserves to protect public treasuries from inflation and passing pro-crypto policies to attract investment.
Related: New York bill proposes legalizing Bitcoin, crypto for state payments
Municipalities and states embrace digital assets
Several municipalities and territories around the globe already accept crypto for tax payments or are exploring various implementations of blockchain technology for government spending.
The US state of Colorado started accepting crypto payments for taxes in September 2022. Much like Panama City said it will do, Colorado immediately converts the crypto to fiat.
In December 2023, the city of Lugano, Switzerland, announced taxes and city fees could be paid in Bitcoin, which was one of the developments that earned it the reputation of being a globally recognized Bitcoin city.
The city council of Vancouver, Canada, passed a motion to become “Bitcoin-friendly city” in December 2024. As part of that motion, the Vancouver local government will explore integrating BTC into the financial system, including tax payments.
North Carolina lawmaker Neal Jackson introduced legislation titled “The North Carolina Digital Asset Freedom Act” on April 10. If passed, the bill will recognize cryptocurrencies as an official form of payment that can be used to pay taxes.
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As digital assets gain mainstream adoption, establishing a legal framework for stablecoins is a “good idea,” said US Federal Reserve Chair Jerome Powell.
In an April 16 panel at the Economic Club of Chicago, Powell commented on the evolution of the cryptocurrency industry, which has delivered a consumer use case that “could have wide appeal” following a difficult “wave of failures and frauds,” he said.
Powell delivers remarks at the Economic Club of Chicago. Source: Bloomberg Television
During crypto’s difficult years, which culminated in 2022 and 2023 with several high-profile business failures, the Fed “worked with Congress to try to get a […] legal framework for stablecoins, which would have been a nice place to start,” said Powell. “We were not successful.”
“I think that the climate is changing and you’re moving into more mainstreaming of that whole sector, so Congress is again looking […] at a legal framework for stablecoins,” he said.
“Depending on what’s in it, that’s a good idea. We need that. There isn’t one now,” said Powell.
This isn’t the first time Powell acknowledged the need for stablecoin legislation. In June 2023, the Fed boss told the House Financial Services Committee that stablecoins were “a form of money” that requires “robust” federal oversight.
Related: Stablecoins are the best way to ensure US dollar dominance — Web3 CEO
Support for stablecoin legislation is growing
The election of US President Donald Trump has ushered in a new era of pro-crypto appointments and policy shifts that could make America a digital asset superpower.
Washington’s formal embrace of cryptocurrency began earlier this year when Trump established the President’s Council of Advisers on Digital Assets, with Bo Hines as the executive director.
Hines told a digital asset summit in New York last month that a comprehensive stablecoin bill was a top priority for the current administration. After the Senate Banking Committee passed the GENIUS Act, a final stablecoin bill could arrive at the president’s desk “in the next two months,” said Hines.
Bo Hines (right) speaks of “imminent” stablecoin legislation at the Digital Asset Summit on March 18. Source: Cointelegraph
Stablecoins pegged to the US dollar are by far the most popular tokens used for remittances and cryptocurrency trading.
The combined value of all stablecoins is currently $227 billion, according to RWA.xyz. The dollar-pegged USDC (USDC) and USDt (USDT) account for more than 88% of the total market.
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