This week’s two by-elections had something for everyone – except Rishi Sunak’s Conservatives.
Sir Keir Starmer’s Labour Party has now broken into the record books with six by-election gains from the Conservatives, beating New Labour’s performance in the run-up to the 1997 Election.
Reform UK got more than 10% of the votes in both constituencies.
The Liberal Democratslost two deposits, with less than 5% of votes cast each time. But even they have something to celebrate, according to one polling analyst.
Peter Kellner argues that their four by-election victories over the Tories since 2019 show that they are much better at concentrating their vote than they used to be – when they regularly clocked up 10% plus support across the country with nothing to show for it.
Reform could be falling into a similar trap with significant minority support spread nationwide, enough to damage the Conservatives without a sniff of winning a seat.
Image: Damien Egan won the Kingswood by-election for Labour.
Pic: Reuters
Image: Labour’s Gen Kitchen celebrates after being declared winner in the Wellingborough by-election. Pic: PA
No wonder Nigel Farage is talking about “uniting the centre-right vote” of Conservatives and Reform, without committing himself personally to fight in the approaching general election.
Jacob Rees-Mogg has taken up the call for the two right-wing groupings to come together.
Conservative MP Dame Andrea Jenkyns has leapt on the by-election defeats in Kingswood and Wellingborough to renew her call for Sunak to be replaced.
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The prime minister must be wondering why his MPs keep inflicting damage on their party through their own behaviour.
All six of Labour’s by-election gains were precipitated by voluntary or forced resignations by Conservative MPs.
Image: Prime Minister Rishi Sunak reacts to last week’s by-election results
The tables will be turned in the next by-election in just 10 days’ time, when Labour is defending the constituency of Rochdale in Lancashire and the party is certain to be the victim of a technical knock-out because it no longer has a candidate.
Starmer’s discomfort in Rochdale and the continued agony of political death by many by-election cuts explain why there is growing speculation that the prime minister may call the general election sooner rather than later in the year, as he has suggested.
Rochdale is an unholy mess for Labour, which exposes one of the most painful divisions in the party.
Labour has held the seat since 2005. Tony Lloyd, who died last month, held it in 2019 with more than half the votes cast.
In its haste to make the best of a sure thing, Labour rushed to hold the vote to find a replacement MP.
Azhar Ali, a local council big wig, was chosen quickly as the Labour candidate. Too quickly, it turns out.
Image: Labour’s former candidate for Rochdale, Azhar Ali. Pic: PA
The Mail on Sunday and then The Daily Mail exposed comments about the Israel-Gaza conflict which he had made at Labour gatherings, in clear violation of party policy.
Ali had embraced conspiracy theories that Israel allowed the 7 October attacks to happen and made accusations about Jewish influence in the media.
He later issued an “unreserved” apology, saying the comments were “deeply offensive, ignorant, and false”.
After an agonising weekend when Labour leaders tried to keep Ali as their official candidate, he was cut loose along with the candidate in neighbouring Hyndburn for similar comments.
It is easy to see why Starmer was reluctant to act. Nominations for the Rochdale by-election had closed.
Labour was stuck with Ali on the ballot paper as their candidate, come what may. It was too late to select a substitute.
Labour must sit it out for the remainder of the campaign, as Ali presses on as an independent. If he wins, he will not receive the Labour whip.
This will automatically exclude him from being the Labour candidate at the approaching general election.
The party leadership could then impose Paul Waugh as the Labour candidate.
In a move which surprised many, Waugh gave up a career as a top political journalist to stand for selection in this by-election – unsuccessfully as it turned out.
This awkward outcome is probably the best that Labour can hope for.
Two controversial ex-Labour MPs are also standing in the by-election.
Simon Danczuk won Rochdale for Labour in 2010 and then 2015. But he was suspended from the party shortly afterwards for sexting a 17-year-old girl. This time, Danczuk is standing for Reform UK.
The candidacy of George Galloway is of much greater concern.
Image: George Galloway. File pic: PA
Since his first election in 1987, Galloway has been an MP in four constituencies: Glasgow Hillhead/Kelvin for Labour, and Bethnal Green & Bow, and Bradford West, for the Respect Party.
Galloway is pugnacious and articulate, and he specialises in fighting highly charged by-elections.
He is highly litigious and willing to take on his critics. He takes a close interest in the Middle East and is pro-Palestinian.
There have been allegations of antisemitism against him – claims he has strongly denied and even once labelled “outrageous”.
Roughly a third of the population in Rochdale has a Muslim background. As Ali’s comments showed, the Israel-Gaza conflict has already inflamed passions.
Opinion polls show that a clear majority of the British public does not take sides in the current conflict.
Of the remainder, around 20% each sympathise with Israel and the Palestinians. But the balance among Labour activists favours the Palestinians.
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0:40
Starmer: ‘People want change’
Rooting out the antisemitism which characterised Labour during Jeremy Corbyn’s far-left leadership is one of Starmer’s signal achievements.
Rough justice has meant that figures such as Corbyn, Diane Abbott and now Ali have been kicked out of the party.
But tensions have mounted as Israel’s high-casualty counteroffensive continues.
In the past, Labour has benefitted from strong support in British Pakistani and Bangladeshi communities. In a handful of constituencies, this has been decisive.
Starmer is not pleasing many in his party by lining its Middle East policy up close to the government’s own position.
The Conservatives certainly are not going to give him any credit for backing them up.
Even without the divisive return of Galloway, Conservatives are already saying that the developments in Rochdale reveal that it is the same old Labour Party underneath, for all the changes supposedly wrought by Starmer.
Rochdale means chronic by-election pain for Starmer. There is no end to agony in sight for Sunakeither.
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3:17
How Labour’s latest row unfolded
There is another by-election in the offing in Lancashire in the marginal constituency of Blackpool South
The Commons Standards Committee has recommended a potentially by-election-triggering 35-day suspension for the Conservative MP Scott Benton over lobbying and corruption allegations.
Voters do not like by-elections in grubby circumstances. They are inclined to punish the incumbent, but the reputation of all politics takes a hit.
The excuses Sunak gave this weekend for the Tory defeats in Kingswood and Wellingborough do not stand up.
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With the general election imminent, these were not “midterm by-elections”. Nor was turnout exceptionally low for such contests. The exception was the massive scale of the drop in the Conservative vote.
The quickest way to make it stop would be to call that general election.
In the past few days, keen observers report an upsurge in activity by those involved in running the Tory campaign.
While Starmer is mired in Rochdale, a giveaway budget on 6 March as the springboard to a May election must remain a distinct possibility – before it gets any worse.
Bhutan is using surplus, carbon-free hydropower to mine Bitcoin, converting excess electricity into a liquid digital export rather than curtailing generation.
Mining and custody are handled by the sovereign investment arm, Druk Holding and Investments (DHI), and confined to designated jurisdictions, limiting retail exposure.
Officials describe mined Bitcoin as a foreign-currency liquidity buffer that has already supported government finances.
The central bank permits crypto activity only under a phased, sandbox-style framework linked to Gelephu Mindfulness City, with an emphasis on risk control and transparency.
Bhutan’s pitch to the crypto world is simple: If a country has abundant renewable power and limited domestic demand, it can turn electrons into digital assets.
In practice, the Himalayan kingdom has been quietly doing exactly that: using hydropower to run industrial-scale Bitcoin (BTC) mining and to build a state-backed, values-driven “green digital assets” strategy that officials say can generate hard-currency liquidity, support public spending and help develop a domestic tech workforce.
Step 1: Start with the only natural resource that scales
Bhutan’s energy system is dominated by hydropower, and electricity exports, especially to India, are a core pillar of the economy. Reportedly, Bhutan’s leadership views expanded hydropower capacity as a prerequisite for scaling its “green” crypto ambitions.
The government’s own energy planning documents frame this expansion in large numbers. Bhutan’s National Energy Policy 2025 cites a “techno-economically viable hydropower potential” of 33,000 megawatts (MW), based on the Power System Master Plan 2040, and positions hydropower alongside solar, wind and storage as central to long-term growth.
A World Bank report similarly places Bhutan’s feasible hydropower potential at roughly 33 gigawatts and notes the macroeconomic impact of recent imports of IT equipment linked to crypto mining expansion.
Recent cross-border project announcements underline how tangible the buildout has become. In November 2025, India inaugurated the 1,020-MW Punatsangchhu-II hydropower project and extended a new credit line tied to deeper energy cooperation. Officials also noted that Bhutan’s domestic power demand is around 1,000 MW, with surplus electricity exported.
Step 2: Use surplus hydropower as “computing fuel”
Bhutan’s crypto strategy is spearheaded by Druk Holding and Investments (DHI), the commercial investment arm of the royal government.
In an April 2025 interview with Reuters, DHI CEO Ujjwal Deep Dahal said Bhutan began adding cryptocurrencies to DHI’s portfolio in 2019. He framed Bitcoin mining as a way to increase access to foreign-currency liquidity and create value from surplus hydropower.
Bhutan has used some crypto-related profits to help pay government salaries for the past two years, according to senior officials in Thimphu.
A key industrial lever is the Bitdeer and DHI partnership, announced in May 2023. Bitdeer said the parties planned to launch a closed-end fund of up to $500 million to develop carbon-free digital asset mining operations in Bhutan, leveraging the country’s renewable power and Bitdeer’s mining expertise.
Step 3: Treat Bitcoin like a financial buffer for a seasonal grid
Hydropower systems often face a timing problem: Generation can surge when rivers run high and shrink when flows drop.
In January 2025, Bhutan’s Gelephu Mindfulness City (GMC) project described the country’s approach as a way to monetize surplus summer hydropower via “green Bitcoin,” then convert that value back into electricity or imports when power is tighter. The project quoted DHI’s Dahal as describing Bitcoin “strategically as a battery.”
That “battery” framing matters because it is one of Bhutan’s most consistent arguments for why mining is not merely speculation. Instead, it is positioned as infrastructure-adjacent, turning otherwise curtailed renewable generation into a liquid reserve asset.
Step 4: Keep it sovereign and increasingly regulated
Bhutan’s mining and reserve-building efforts have attracted attention because they are state-linked rather than purely private. In September 2024, blockchain analytics firm Arkham disclosed that it had identified Bhutan government-linked Bitcoin holdings on its platform and characterized those holdings as originating from mining rather than seizures. However, onchain estimates fluctuate with price movements and wallet attribution and should not be treated as audited public accounts.
On the regulatory front, Bhutan’s central bank, the Royal Monetary Authority (RMA), has publicly signaled a controlled approach. In an April 30, 2025, notice titled “RMA’s Regulatory Stance on Cryptocurrency,” the RMA said it would adopt a phased and focused strategy.
The notice stated that crypto mining and exchanges would be permitted only for entities registered with GMC. Participation would also be limited to business partners operating under the GMC framework.
This sandbox-like containment aligns with how GMC is being positioned as a special jurisdiction with its own policy toolkit and a prominent finance and digital assets pillar. That framework includes a proposed blockchain-linked currency concept, “ter,” and a planned fully reserved digital bank, Oro Bank.
Step 5: The “green coin” narrative and the risks involved
Bhutan’s officials explicitly emphasize the climate angle. For example, Dahal has argued that coins mined using Bhutan’s hydropower offset coins mined with fossil energy elsewhere and contribute to the green economy.
But even in a renewables-heavy system, these risks do not disappear:
Volatility and fiscal risk: Bitcoin’s price can swing sharply, and using volatile assets in public finance introduces budgeting risk, even if holdings are built from surplus power rather than taxes.
Transparency: Onchain tracking is not the same as official disclosure. Audited reporting and clear governance matter when reserves are state-linked.
Financial crime and consumer protection: The RMA’s phased stance and the restriction of permitted activity to GMC-registered entities reflect a preference for controlled participation rather than open retail speculation.
Testing a green Bitcoin model
Bhutan’s green Bitcoin economy is not a meme trade; it is a state-directed effort to bolt a new export, digital assets, onto the country’s existing comparative advantage in renewable power. The strategy uses a special jurisdiction, Gelephu Mindfulness City, alongside central bank guardrails to limit spillover risk.
Whether it becomes a durable model will depend less on slogans and more on hydropower expansion, disciplined reserve management and how transparently the state accounts for what it mines, holds and sells.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision. While we strive to provide accurate and timely information, Cointelegraph does not guarantee the accuracy, completeness, or reliability of any information in this article. This article may contain forward-looking statements that are subject to risks and uncertainties. Cointelegraph will not be liable for any loss or damage arising from your reliance on this information.
The Bank of Russia put forward a policy proposal that would allow non-qualified investors to buy certain cryptocurrencies.
According to a Tuesday announcement, the central bank’s proposal would allow both qualified and non-qualified investors to buy most crypto, but with limitations.
Non-qualified investors would be limited to a yet-to-be-defined set of liquid crypto after passing a knowledge test, capped at 300,000 rubles ($3,834) a year. Qualified investors would gain broad market access excluding privacy coins, also subject to a knowledge test.
Russian residents will also be able to acquire crypto on foreign platforms, pay with foreign accounts, and transfer the resulting assets through Russian intermediaries. In such cases, they will be required to notify the tax service of those transactions.
The report follows a recent statement from the central bank’s first deputy governor, Vladimir Chistyukhin, who recently said that Russia was considering easing crypto rules.
He hinted at the potential removal of the requirement to meet the “super-qualified investor” criteria for buying and selling crypto with actual delivery.
The “super-qualified investor” category was introduced in late April, when Russia’s finance ministry and central bank launched a crypto exchange. This classification is defined by wealth and income thresholds of over 100 million rubles ($1.3 million) or an annual income of at least 50 million rubles.
The central bank said that it “continues to consider cryptocurrencies a high-risk instrument.”
The announcement also reiterates that — while stablecoins and cryptocurrencies are recognized as monetary assets that can be bought and sold — they cannot be used for domestic payments.
Under the proposal, crypto transactions will be available through exchanges, brokers and trustees operating through their existing licenses. Specialized depositories and exchanges that work with cryptocurrencies will be subject to separate requirements.
South Korean payments processor BC Card has completed a pilot project that enabled foreign users to pay local merchants using stablecoins.
BC Card’s pilot project was announced Tuesday and was conducted with blockchain company Wavebridge, wallet provider Aaron group and cross-border remittance provider Global Money Express. The companies had foreign users convert their stablecoins held in overseas wallets, which were partnered with BC Card, into digital prepaid cards.
The company said this pilot was not a short-term project, but part of preparations to implement a stablecoin payment structure. The change is a response to the evolution of South Korean stablecoin regulations, it said.
BC Card is one of South Korea’s largest payment companies, which reportedly processes over 20% of South Korea’s card transactions and covers 3.4 million domestic merchants. Its majority owner is KT Corp, one of the country’s three major telecom companies.
Shehram Khattak, general counsel at Trust Wallet, told Cointelegraph:
Ultimately, banks will have to deal with legacy operations but not only from an operations perspective but also processes; the entire department will have to change how they function.”
In late July, local media reported that credit card companies were scrambling to respond to perceived threats from stablecoins. The nation’s credit card industry reportedly formed a joint task force as local regulators opened discussions regarding the introduction of won-based stablecoins.
BC Card reportedly launched an internal team dedicated to tracking trends in both the domestic and international stablecoin markets. Still, local stablecoin regulations are taking longer to take shape than anticipated.
The crux of the debate appears to be the BOK’s desire to require banks to own at least 51% of any stablecoin issuer seeking regulatory approval. Other regulators appear to be pushing towards a more diverse ecosystem.
Stablecoins are increasingly discussed as an alternative or complementary payment method to traditional solutions such as payment cards or bank wire transfers.