Badenoch seeks urgent Fujitsu talks over Post Office compensation

Published

1 year ago

January 17, 2024

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Kemi Badenoch, the business secretary, is seeking urgent talks with Fujitsu to thrash out a compensation package for sub-postmasters affected by the Post Office Horizon scandal.

Sky News has learnt that Ms Badenoch wrote to Takahito Tokita, the Japanese company’s chief executive, in the wake of an acknowledgement from Fujitsu bosses that it had a “moral obligation” to contribute to the compensation bill.

In the letter, parts of which have been seen by Sky News, the minister wrote that she would “value the opportunity to discuss Fujitsu’s involvement in the Post Office Horizon scandal“.

“As you may know, my department is at the forefront of our government’s efforts to right the wrongs of the past.

“I am committed to ensuring that postmasters affected get the justice they deserve.”

“This is why the UK government announced new legislation last week, to overturn wrongful convictions and a plan to ensure swifter access to compensation.”

The scale of the eventual bill remains unclear, although ministers have said that the government has set aside £1bn to fund payouts to convicted and other affected sub-postmasters.

Government insiders believe that Fujitsu will be put under pressure to fund a substantial sum running to hundreds of millions of pounds after both it and the Post Office – which is owned by the government – lied and obstructed justice for many years.

On Tuesday, Paul Patterson, Fujitsu’s European chief executive, told MPs the company was “truly sorry” for its conduct, which has drawn renewed scrutiny after ITV broadcast Mr Bates vs the Post Office, a drama about what has been labelled Britain’s biggest-ever miscarriage of justice.

Kevin Hollinrake, the minister in Ms Badenoch’s department responsible for postal affairs, has been praised by some of those involved in the scandal for having repeatedly raised it in parliament while he was on the backbenchers.

Mr Hollinrake was also responsible for introducing £600,000 payouts last autumn for those whose convictions had been overturned.

He said earlier this week that negotiations with the company would be focused on “maximising the contribution to the taxpayer”.

“It’s a very significant bill [which] may end up north of £1bn.

“We should expect people who contributed to this scandal to contribute financially.”

Nevertheless, both Alan Bates, the architect of the original efforts to expose the fraud against sub-postmasters, and Jo Hamilton, another of the victims highlighted in the ITV drama, have criticised the bureaucracy attached to the compensation process.

“I understand that we are awaiting the conclusions of the Williams inquiry, but ahead of that I would welcome a discussion with you on the type of response Fujitsu might make and the role you foresee Fujitsu playing towards securing justice for those affected,” Ms Badenoch added in her letter to Mr Tokita.

One source said that Ms Badenoch had been scheduled to meet Fujitsu officials during a visit to Japan last year, but that talks had not taken place owing to diary clashes.

The Horizon contract is said to have earned £2.5bn for Fujitsu despite protracted and widespread warnings that the system was flawed.

To compound its role in creating the accounting software at the heart of the crisis, Fujitsu staff also gave evidence as expert witnesses during private prosecutions brought by the Post Office.

The scandal has raised questions about the behaviour of both the Japanese company and the Post Office, as well as the latter’s government shareholder body responsible for its oversight.

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Australian court ruling could lead to $640M in Bitcoin tax refunds

Published

15 mins ago

May 19, 2025

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Australian court ruling could lead to 0M in Bitcoin tax refunds

A court decision in Australia could open the door to as much as $640 million in capital gains tax (CGT) refunds on Bitcoin transactions after a judge ruled that crypto should be treated as money rather than a taxable asset.

On May 19, the Australian Financial Review (AFR) reported that the decision arose within a criminal case involving federal police officer William Wheatley, who allegedly stole 81.6 Bitcoin (BTC) in 2019. At the time, the assets were worth roughly $492,000. At current market prices, the tokens are valued at more than $13 million.

In the case, Judge Michael O’Connell of Victoria ruled that Bitcoin qualifies as a form of money rather than property, likening the digital asset to Australian dollars rather than to shares, gold or foreign currency.

The interpretation could set a legal precedent, potentially placing Bitcoin transactions outside the scope of Australia’s current CGT regime.

New court ruling challenges Australian crypto tax laws

In an AFR interview, tax lawyer Adrian Cartland said the verdict “totally upends” the Australian Taxation Office’s (ATO) current position.

Since 2014, the ATO has classified crypto assets as CGT assets. This means that users must pay tax when selling or trading them. Under the ATO’s guidance, any disposal of Bitcoin, including selling it for fiat, exchanging it for another crypto or using it to purchase goods or services, constitutes a CGT event.

This framework has been the basis for taxing cryptocurrency transactions in Australia for over a decade. However, the recent ruling challenges the approach by suggesting that Bitcoin functions more like money than property. This potentially exempts it from CGT.

Tax refunds could reach $640 million

Cartland said it was held that Bitcoin is Australian money. “That is, it is not a CGT asset. Therefore, acquisitions and disposals of Bitcoin have no tax consequences,” the tax lawyer added.

If the ruling is upheld on the appeal, Cartland estimates that there could be potential tax refunds totalling 1 billion Australian dollars ($640 million).

However, while Cartland thinks there could be up to a billion in refunds, the ATO said there were no official figures that confirm the amount to be potentially refunded if the case changes how Bitcoin is taxed in Australia.

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Revolut eyes French license and $1.1B expansion amid EU growth

Published

1 hour ago

May 19, 2025

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Revolut eyes French license and .1B expansion amid EU growth

Revolut, a European neobank with crypto support, plans to invest more than 1 billion euro ($1.1 billion) in France and apply for a local banking license.

According to a May 19 Fortune report, Revolut representatives announced the initiative during the Choose France business summit hosted by President Emmanuel Macron in Paris. The London-based neobank also plans to set up its new European Union-serving headquarters in Paris, promising to invest 1 billion euro and hire at least 200 people within three years.

Revolut spokespeople also said that the firm is in the process of submitting an application to the French banking regulator Prudential Supervision and Resolution Authority. According to an anonymous source cited by Fortune, the regulator has been pushing the neobank to get a license to improve supervision due to its popularity in France.

Revolut currently employs about 300 people and serves five million customers in France. This makes the nation the neobank’s top European Union market.

Aiming for the stars

Revolut hopes to onboard 10 million users by the end of next year and then double that number by 2030. The firm already offers loans, trading and cryptocurrency support in its mobile-first banking platform.

The neobank has seen rapid growth ever since its founding in 2015. The company recently received a $45 billion valuation and reportedly served over 55 million customers as of late May.

Revolut’s 2024 annual report release shows that the firm’s 2024 revenue was 3.1 billion British pounds ($4 billion). A recent Financial News article also puts the company’s headcount at 10,133 employees as of Dec. 31, 2024.

An increasingly regulated institution

Revolut obtained its UK banking license in late July 2024, where 11 million of its customers are located. Now, the neobank is aggressively looking to obtain similar permits across other jurisdictions, with 10 applications underway.

Revolut received the Prepaid Payment Instruments license from India’s central bank earlier this month. This license allows the bank to offer multi-currency forex cards and cross-border remittance services in India.

EU-based Revolut customers now leverage its Lithuania operations. The firm received a banking license in Lithuania at the end of 2018, enabling it to serve customers across the European Economic Area better.

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Dubai regulator sets compliance deadline for updated crypto rules

Published

2 hours ago

May 19, 2025

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Dubai regulator sets compliance deadline for updated crypto rules

Dubai’s crypto regulator has given licensed digital asset companies until June 19 to comply with its updated activity-based Rulebooks to enhance market integrity and risk oversight.

On May 19, Dubai’s Virtual Assets Regulatory Authority (VARA) announced that it had released Version 2.0 of the Rulebooks.

The regulator said it had strengthened controls around margin trading and token distribution services, harmonised compliance requirements across all licensed activities and given clearer definitions for collateral wallet arrangements.

VARA’s team will engage with licensed entities and expects the companies to comply with the updated rules after a 30-day transition period.

“In line with global regulatory best practices, a 30-day transition period has been granted to all impacted virtual asset service providers [VASPs], with full compliance required by 19 June 2025,” VARA wrote.

VARA enhances supervisory mechanisms

VARA highlighted that it had enhanced supervisory mechanisms across several regulated activities. This includes advisory, broker-dealer, custody, exchange, lending and borrowing, virtual asset (VA) management and investment, and VA transfer and settlement services.

A VARA spokesperson told Cointelegraph that the updates will bring consistency across all activity-based rules defining core operational terms. The spokesperson gave examples of terms like “client assets,” “qualified custodians,” and “collateral requirements” as some of the terms more consistently defined in the update.

The update also aligned risk management and disclosure obligations, where activities overlap, in areas like brokerage, custody and exchange.

“The aim was to reduce ambiguity and help VASPs navigate cross-functional compliance more easily,” VARA told Cointelegraph.

Dubai regulator tightens leverage thresholds for margin trading

As for margin trading, the VARA spokesperson said they tightened leverage thresholds, mandated clearer collateralisation standards, and enhanced the monitoring obligations for VASPs offering this feature.

Margin trading allows traders to control large positions with smaller amounts of capital. It amplifies both gains and losses. Tightening the leverage traders use helps limit the risks of widespread liquidations in a market downturn.

The crypto regulator introduced a new section on token distribution that sets out licensing prerequisites, investor protections and marketing restrictions. The spokesperson emphasized the marketing restrictions, especially for “retail-facing offers.”

“It’s about aligning with global conduct expectations and closing observed regulatory gaps,” the VARA spokesperson said.