After months of delay, parliamentary bickering and legal challenges, Rishi Sunak’s Rwanda bill is set to become law.
Legislation for the prime minister’s controversial plan to deport asylum seekers to the landlocked African country cleared parliament last night after a lengthy battle.
The policy has been plagued by setbacks since it was first announced two years ago, with thousands of people arriving on Kent beaches aboard small boats all the while.
So what is the Rwanda bill and why is it so controversial? Here are some of the key questions, answered.
What is the Rwanda asylum plan?
Rishi Sunak’s promise to “stop the boats” is one of five pledges he has staked his premiership on.
Key to this is the Rwanda scheme, which would involve some asylum seekers being sent to Rwanda to have their asylum claims processed there.
If successful, they can be allowed to stay in Rwanda or seek asylum in another country. But they would not be able to apply to return to the UK.
Ministers say the policy will act as a deterrent to people thinking of travelling to the UK “illegally” (though whether or not crossing the English Channel in a small boat is actually illegal is complicated).
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Image: A group of people are brought to Dover onboard a Border Force vessel. Pic: PA
This would be more than two years since the first flight attempted under the deal was grounded amid last-minute legal challenges.
No asylum seekers have yet been sent to Rwanda.
While he refused to go into “sensitive” operations details on Monday, Mr Sunak did outline a number of measures the government was taking to prepare for the first flights to take off.
He said there were now 2,200 detention spaces and that 200 dedicated caseworkers had been trained to process claims quickly.
Around 25 courtrooms have been made available and 150 judges will provide 5,000 sitting days, he added.
Mr Sunak also said there were 500 “highly trained individuals ready to escort illegal migrants all the way to Rwanda, with 300 more trained in the coming week”.
In November, the Rwanda plan was ruled unlawful by the UK’s Supreme Court, which said those being sent to the country would be at “real risk” of being returned home, whether their grounds to claim asylum were justified or not – breaching international law.
Is Rwanda a safe country?
Much of the debate around the policy – putting aside differing views on whether it is effective or ethical – centres around the question of whether Rwanda is considered a “safe country”.
The government insists it is, although it’s worth pointing out that the UK granted asylum applications to 15 people from Rwanda last year.
According to Human Rights Watch, critics of the ruling political party in Rwanda have been “arrested, threatened, and put on trial”. Some said they were tortured in detention, the organisation added.
Image: Rishi Sunak’s promise to ‘stop the boats’ is one of five pledges he has staked his premiership on
Who will be affected by the Rwanda scheme?
The Home Office plans to use the agreement with Rwanda to remove people who make dangerous journeys to the UK and are considered “inadmissible” to the UK’s asylum system – and will include people who have arrived irregularly since 20 July last year.
People whom the Home Office wishes to transfer to Rwanda will be identified and referred to the Rwandan authorities on a case-by-case basis, after an initial screening process following arrival in the UK, the government has said.
Although the agreement focuses on asylum seekers, under the treaty people who have made unauthorised journeys to the UK but not claimed asylum can be relocated to Rwanda as well.
On Monday, the Rwanda bill finally passed through the Commons and Lords and is now set to become law.
The legislation was introduced by the government in the wake of November’s Supreme Court ruling which had declared that Rwanda was not safe for refugees.
Since then, the government has signed a new treaty with Rwanda which it says contains additional safeguards for people relocated.
With the new bill, parliament was asked to declare that Rwanda must be treated as safe in order to render the relocation plan lawful in UK domestic law.
What happens now?
The bill is now headed for royal assent after passing through parliament, but it’s likely to still face various challenges.
Campaigners opposing the plans, and individual asylum seekers who are told they are to be sent to Rwanda, could look to take the government to court again in an attempt to stop flights.
Whether any legal challenges could be successful in light of the new law remains to be seen.
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Rwanda plan an ‘expensive gimmick’
How much has this all cost?
A lot.
An investigation by Whitehall’s spending watchdog said the cost of the Rwanda scheme could rise to half a billion pounds, plus hundreds of thousands more for each person deported.
The government has refused to say how much more money, on top of the £290m already confirmed, that the UK had agreed to pay Rwanda under the deal. However, a National Audit Office report revealed millions more in spending including £11,000 for each asylum seeker’s plane ticket.
What are people opposed to the Rwanda asylum plan saying now the bill was passed?
The passing of the bill has sparked fresh condemnation from charities and other organisations.
Amnesty International said it will “leave a stain on this country’s moral reputation”.
Sacha Deshmukh, Amnesty International UK’s chief executive, added: “The bill is built on a deeply authoritarian notion attacking one of the most basic roles played by the courts – the ability to look at evidence, decide on the facts of a case and apply the law accordingly.
“It’s absurd that the courts are forced to treat Rwanda as a ‘safe country’ and forbidden from considering all evidence to the contrary.”
Screenshots of an internal email outlining plans to wind down Shima Capital have surfaced online, days after the US Securities and Exchange Commission sued the crypto venture firm and its founder over allegations of investor fraud.
On Nov. 25, the SEC charged Shima Capital Management LLC and its founder, Yida Gao, with making false and misleading statements while raising almost $170 million from investors, the agency announced on Dec. 3.
The complaint, filed in the US District Court for the Northern District of California, alleged that Gao inflated his investment track record in marketing materials used to raise capital for Shima Capital Fund I between 2021 and 2023.
According to the SEC, Gao claimed one prior investment had delivered a 90x return, when the actual return was closer to 2.8x. The regulator also alleged that when discrepancies in the pitch deck were about to be reported publicly, Gao told investors the issues were the result of clerical errors.
SEC alleges $1.9 million undisclosed gain
Separately, the SEC claimed that Gao raised about $11.9 million through a special purpose vehicle tied to BitClout tokens, telling investors that they would be protected by discounted token purchases. While Gao did acquire tokens at a discount, the SEC said he sold them to the SPV at a higher price without disclosing that he personally retained about $1.9 million in profits.
In a Wednesday post on X, crypto journalist Kate Irwin shared screenshots of an email allegedly sent by Gao to portfolio founders. In the screenshots, Gao purportedly said he would step down as managing director of Shima Capital and that the fund would undergo an “orderly wind-down.”
Gao’s alleged email to portfolio companies. Source: Kate Irwin
The screenshots purportedly show Gao stating that the SEC and Department of Justice actions are related to his personal conduct, not that of Shima Capital’s portfolio companies, and claiming that no fines have been imposed on the company.
The screenshots also show that independent advisers from FTI Consulting and FTI Capital Management would oversee the wind-down process and monetization of investments, while Shima’s finance team would remain in place. Gao allegedly said he would remain involved with portfolio support “as permitted,” but without management control.
Cointelegraph could not independently verify the email. We reached out to Shima Capital and some of the fund’s portfolio companies for confirmation, but had not received responses at the time of publication.
Shima Capital launched with $200 million debut fund
In 2022, Shima Capital announced the launch of its first venture fund, Shima Capital Fund I, raising $200 million to back early-stage blockchain startups. Founded in 2021 by Gao, the firm said the fund received backing from a range of prominent investors, including Dragonfly Capital, Animoca Brands, OKX Blockdream Capital, Republic and Andrew Yang.
Shima Capital has invested in numerous crypto projects, including Humanity Protocol, Berachain, Monad, Pudgy Penguins, Shiba Inu and many others.
Two US Senators have introduced legislation aimed at cracking down on crypto fraud and scams by equipping law enforcement with better tools to spot attacks and identify perpetrators.
The Strengthening Agency Frameworks for Enforcement of Cryptocurrency (SAFE) Act, introduced by Democrat Elissa Slotkin and Republican Jerry Moran on Monday, seeks to coordinate action between the US Treasury, law enforcement, regulators and private sector players to tackle crypto fraud and scams.
“This task force, established by the SAFE Cryptocurrency Act, will allow us to draw upon every resource we have to combat fraud in digital assets,” Slotkin said, while Moran added:
“As cryptocurrency becomes more widely used, this legislation would help counter threats and make certain all Americans are better protected from crypto scams.”
It should be noted that the figure includes any investment scam that simply mentions crypto as part of its ploy. Many do not involve blockchain or cryptocurrencies.
However, Gabriel Shapiro, general counsel of crypto investment firm Delphi Labs, noted that a successful implementation of the SAFE Crypto Act could prompt crypto fraudsters and scammers into a state of panic .
“Scammers will probably end up shitting themselves if this goes hard,” Shapiro said in a post to X on Tuesday, noting that the attorney general, the director of the Financial Crimes Enforcement Network and the director of the United States Secret Service would be among the highest-ranking officials involved in pursuing crypto criminals.
Shapiro said the SAFE Crypto Act could be “very useful” as the US securities and commodity regulators currently aren’t as focused on enforcement action against hackers, scammers and Ponzi scheme operators.
TRM Labs among the private players to lend a hand
Blockchain forensic firm TRM Labs is among the private sector players ready to assist US officials, with its vice president and global head of policy, Ari Redbord, stating that a collaboration would help track and disrupt illicit networks in real-time:
Digital asset platform Exodus has partnered with MoonPay to launch a US dollar-backed stablecoin for everyday payments.
The Exodus Movement, which is also behind a popular crypto wallet, announced on Tuesday that its fully reserved dollar stablecoin is planned for launch in early 2026. The stablecoin will be issued and managed by MoonPay, a leading crypto payments platform and fiat on-ramp.
The stablecoin will be developed using M0, a stablecoin infrastructure platform that allows companies to build, issue and manage their own custom stablecoins.
The new stablecoin, which has not been named, aims to simplify digital dollar transactions for consumers without requiring crypto knowledge. It will integrate into Exodus Pay, allowing users to spend and send money while maintaining self-custody.
“Stablecoins are quickly becoming the simplest way for people to hold and move dollars onchain, but the experience still needs to meet the expectations set by today’s consumer apps,” said JP Richardson, co-founder and CEO of Exodus.
The stablecoin gold rush continues
MoonPay launched its enterprise stablecoin business in November to issue and manage digital dollars across multiple blockchains while integrating with M0’s open infrastructure.
“Enterprises want stablecoins that are programmable, interoperable and tailored to a specific product experience,” said Luca Prosperi, co-founder and CEO of M0.
Banks and crypto firms have rushed to offer their own stablecoins this year, spurred by the passage of the GENIUS Act in July, which introduced a clear federal regulatory framework for fiat-backed stablecoins in the United States.
The Trump family DeFi platform, World Liberty Financial, launched the USD1 stablecoin in March, global payments platform Stripe introduced stablecoin-based accounts to clients in over 100 countries in May, and Tether announced a regulatory-compliant stablecoin called USAT in September.
Two stablecoin players dominate the sector
The new Exodus and MoonPay stablecoin is entering a crowded market still dominated by two primary players.
Tether (USDT) remains the biggest stablecoin issuer with a market share of around 60% and a circulating supply of $186 billion, while Circle’s USDC is second with a 25% share and $78 billion market cap.
These two alone comprise 85% of the total stablecoin market capitalization, which is over $310 billion, according to CoinGecko.
USDT and USDC still dominate stablecoin markets. Source: RWA.xyz