Sunak ‘wanted to scrap Rwanda scheme’ at start of leadership campaign
Rishi Sunak “wanted to scrap the Rwanda scheme” when he begin his 2022 Tory leadership bid, a campaign insider has told Sky News.
The prime minister “had no serious interest” in illegal or legal migration “until he was persuaded otherwise during the campaign”, the insider told our political editor Beth Rigby.
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It follows a report in The Sun which claimed Mr Sunak pushed back against the policy while chancellor because he was concerned about the costs.
The newspaper said his reservations remained when he unsuccessfully took on Liz Truss in the first Tory leadership contest of 2022, but was warned off scrapping it on the grounds it could upset Conservative MPs.
Mr Sunak has made the scheme central to his premiership since entering Downing Street.
On Monday he insisted he never said he was going to axe the Rwanda policy, but did not deny considering it.
In a carefully-worded answer to a question about the report at an event in Accrington, he said: “I didn’t say I was going to scrap it. I mean, that’s completely false. Of course I didn’t.”
He said it was his job as chancellor “to ask some probing questions” and scrutinise money spent on taxpayers’ behalf.
But he said he ultimately backed the policy because “I believe in this scheme” and “we need a deterrent” to small boat crossings.
It came after Mr Sunak on Sunday admitted questioning the “value for money” of the policy while he was chancellor, but insisted it was “wrong” to infer that he did not back sending asylum seekers to the east African country.
Leaked documents seen by Sky News suggested Mr Sunak wanted the scheme “scaled back” and was described as believing the “deterrent won’t work”.
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Leaks suggest PM had Rwanda doubts
The Rwanda policy is seen as key to Mr Sunak’s pledge to “stop the boats” ahead of the next election, which the prime minister has signalled is likely to be held in the second half of 2024.
Read More:
When could the next general election be?
What is the Rwanda plan and why is it controversial?
Labour says Sunak should admit Rwanda doubts
The government has committed at least £400m to the Rwandan government, but no asylum seekers have been relocated as yet after the Supreme Court ruled the proposal unlawful.
Mr Sunak is hoping to address the legal issues with his Safety of Rwanda Bill which is due to return to the Commons this month for debate.
But he could face a showdown with his own MPs, as critics on the right of his party have threatened to amend or even vote down the legislation if it is not tightened, while moderates in the opposite wing have warned against any changes that could breach the UK’s international obligations.
On Monday, the prime minister said he was open to “bright ideas” that could make the bill more effective “whilst complying with our international obligations and retaining Rwanda’s participation in the scheme”.
Labour said claims Mr Sunak contemplated cancelling the plan altogether was evidence of “the total Tory chaos over their failing Rwanda scheme and the weakness of Rishi Sunak”.
Shadow home secretary Yvette Cooper said: “The idea that Rishi Sunak could doubt the policy when chancellor, plan to cancel it in his leadership campaign, and then end up belatedly championing it once it failed and will cost the taxpayer £400m shows how incredibly weak and hopeless he is, and how far he is just chasing gimmicks to pander to parts of the Tory party and keep his job.”
South Korean authorities are reportedly looking into blocking crypto exchange platforms that may have operated without adhering to the requirements set by the country’s financial regulator.
On March 21, local media Hankyung reported that the Financial Intelligence Unit (FIU) of the Financial Services Commission is considering sanctions against crypto exchanges for allegedly operating in the country without reporting as an operator to the appropriate regulators.
South Korean financial authorities require crypto exchanges to report to regulators as virtual asset service providers (VASPs) under the country’s Specified Financial Information Act.
The FIU is investigating a list of exchanges and is conducting consultations with related agencies. The regulator is also considering sanctions, such as blocking access to the exchanges, as they begin to prepare countermeasures.
Exchanges operated without VASP reports
The list of exchanges that have allegedly provided services to South Koreans without the appropriate VASP reports includes BitMEX, KuCoin, CoinW, Bitunix and KCEX. The exchanges reportedly provided marketing and customer support to Korean investors without going through the country’s compliance process.
Under the country’s laws, operators of crypto sales, storage, brokerage and management are required to report to the FIU. If exchanges don’t comply, their business will be considered illegal and subject to criminal penalties and administrative sanctions.
An FIU official said in the report that measures to block access to the exchanges included in the list are being reviewed. The official said the financial regulator is currently consulting with the Korea Communications Standards Commission, the regulator in charge of the internet, on how they can block access to the exchanges.
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South Korean exchanges face scrutiny
Apart from foreign exchanges, South Korean crypto exchanges are also facing scrutiny over suspicions and rumors of financial misconduct.
On March 20, prosecutors raided Bithumb following suspicions that its former CEO, Kim Dae-sik, embezzled company funds to purchase an apartment. The authorities suspect that the exchange and its executive may have violated some financial laws during the apartment purchase. However, Bithumb responded that Kim had already taken a loan to repay the funds.
In addition, rumors of intermediaries getting paid to list projects on Bithumb and Upbit surfaced. Citing anonymous sources, Wu Blockchain said projects claimed to have paid intermediaries millions to get listed on the exchanges.
Upbit responded, demanding the media outlet to disclose the list of digital asset projects that paid brokerage fees.
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Australia’s government, under its ruling center-left Labor Party, has proposed a new crypto framework regulating exchanges under existing financial services laws and has promised to tackle debanking.
It comes ahead of a federal election slated to be held on or before May 17, which current polling shows is shaping up to a dead heat between Prime Minister Anthony Albanese’s Labor and the opposing Coalition led by Peter Dutton.
The Treasury Department said in a March 21 statement that crypto exchanges, custody services and some brokerage firms that trade or store crypto will come under the new laws.
The regime imposes similar compliance requirements as other financial services in the country, such as following rules safeguarding customer assets, obtaining an Australian Financial Services Licence and meeting minimum capital requirements.
Australia’s Treasury says its new crypto regulations have four priorities. Source: Australian Department of the Treasury
In August 2022, the government initiated a series of industry consultations to draft a crypto regulatory framework.
“Our legislative reforms will extend existing financial services laws to key digital asset platforms, but not to all of the digital asset ecosystem,” the Treasury said in its statement.
Small-scale and startup platforms that don’t meet specific size thresholds will be exempt, along with firms that develop blockchain-related software or create digital assets that aren’t financial products.
Payment stablecoins will be treated as a type of stored-value facility under the Government’s Payments Licensing Reforms; however, some stablecoins and wrapped tokens will be exempt.
“Dealing or secondary market trading in these products will be not treated as a dealing activity, and platforms where they are traded will not be treated as operating a market simply because of that trading activity,” the Treasury said.
As part of its crypto agenda, Albanese’s government has also promised to work with Australia’s four largest banks to better understand the extent and nature of de-banking.
There will also be a review into a central bank digital currency and an Enhanced Regulatory Sandbox in 2025, allowing businesses to test new financial products without needing a license.
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Albanese’s government intends to release a draft of the legislation for public consultation. However, a change of government could be on the horizon with a looming federal election, a date for which is yet to be called.
Dutton’s center-right Coalition had earlier promised to prioritize crypto regulation if it wins the election.
The latest YouGov poll published on March 20 shows the Coalition and Labor neck in neck for a two-party preferred vote.
The Coalition leads for topline voting intention, while Albanese continues to lead as preferred prime minister. Source: YouGov
Caroline Bowler, the CEO of local crypto exchange BTC Markets, said in a statement shared with Cointelegraph that the areas of reform are sensible and would keep Australia competitive with global peers.
However, she thinks there “will be additional detail required on capital adequacy and custody requirements.”
“We need to ensure that these requirements aren’t overly burdensome for business investment in Australia,” Bowler said.
Kraken Australia’s managing director, Jonathon Miller, said there is an “urgent need for bespoke crypto legislation” to address the existing confusion and uncertainty in the country’s industry.
“We believe that by establishing a clear crypto regulatory framework and mitigating problems like debanking, government can remove the barriers hampering growth in the Australian economy,” he said.
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