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Whether you heard the wet outdoor version of Rishi Sunak’s election campaign launch or the dry indoor one, his message on national security was the same. 

“The world is more dangerous than it has been at any point since the end of the Cold War,” he told the small banner-waving crowd bussed in to the Excel centre, and it is only “we Conservatives who have that plan and are prepared to take that bold action to ensure the better future for our country and our children.”

The Conservative leader likes to remind voters that his Labour opponent, Sir Keir Starmer, served under and supported his predecessor, Jeremy Corbyn, who opposed Britain’s membership of NATO and the nation’s nuclear deterrent.

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Labour has chosen the single word “change” as their main campaign slogan.

Sir Keir’s Labour Party has certainly changed a lot since the days of Mr Corbyn in relation to his views on defence.

Mr Corbyn has been kicked out of Labour on antisemitism issues and is challenging his old party as an independent in the Islington North constituency, which he has represented for 40 years.

Meanwhile, danger signals are flashing red over the conflicts in Ukraine and Israel and Gaza, amid identification of a new axis of anti-Western aggression, dubbed CRINK from the initial letters of China, Russia, Iran and North Korea.

Foreign policy is seldom a determining factor in UK general elections.

All politicians agree with opinion polls which show that voters are usually much more concerned with domestic issues such as the NHS, the economy and law and order.

Yet Conservative campaigners clearly see it as one of their main attack lines against Labour in this election.

Prime Minister Rishi Sunak, right, with Ukrainian President Volodymyr Zelenskyy at a UK military facility in Dorset in February last year. Pic: Reuters
Image:
Prime Minister Rishi Sunak, right, with Ukrainian President Volodymyr Zelenskyy at a UK military facility in Dorset in February last year. Pic: Reuters

Labour and Tories have similar plans on defence

Over the next six weeks we will find out how important defence is to the electorate and whether an untrustful public really sees any big dividing line between the two main parties on the issue.

They will not find any great difference if Sir Keir has his way, although in a bid not to stir up dissidents in his own ranks he has not made defence a key topic.

The morning before the election was called he withdrew from speaking at the London Defence Conference, perhaps reluctant to be pinned down on spending plans. His shadow defence secretary John Healey and shadow foreign secretary David Lammy went along instead.

Sir Keir has said repeatedly that national security is the first duty of any government.

Labour’s “change” posters are fringed with parts of the Union Jack.

Before the campaign, Sir Keir did his best to show that this is one area where there is more likely to be “no change” than “change”, if he replaces Mr Sunak as prime minister in July.

He visited the BAE Systems submarine works in Barrow-in-Furness, declaring his commitment to nuclear weapons to be “absolute” and “unshakeable”. In the extreme circumstances he pledged to press the nuclear button.

Sir Keir and his team visited Ukraine to demonstrate their support, including backing the current government’s plan for a Europe-leading £3bn annual funding.

Sir Keir Starmer during a visit to Tapa Military Base in Estonia, where British armed forces are deployed as part of NATO commitments. Pic: PA
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Sir Keir Starmer during a visit to Tapa Military Base in Estonia, where British armed forces are deployed as part of NATO commitments. Pic: PA

The Conservatives have pledged to reach 2.5% of GDP spending by 2030 and claim Labour has no plans to do so.

But this week Mr Healey committed to matching the target “as soon as we can”.

The defence conference audience were unimpressed, however, when he said Labour would launch another year-long defence review should it win on 4 July.

If Labour is as close as it claims to the present government’s security policy this seems to be a waste of time.

In truth neither party has explained adequately how they would fund this extra spending, since it is predicated on the unfeasibly large cuts planned in other public spending in the next parliament to which both have nominally accepted.

This convoluted controversy might rouse core Conservative voters but it is unlikely to interest the wider electorate.

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Is the UK prepared for war?

Voters unlikely to want cuts to help fund defence

Many defence experts believe 2.5% is just the low end of what should be spent to stay safe from the increased threats the prime minister identified.

Britain’s level of defence spending was significantly higher during the Cold War and last at 2.5% at the end of the New Labour government.

This week Deputy Prime Minister Oliver Dowden has added to the anxiety, talking up the threat from cyberattacks and urging citizens to stockpile vital supplies in case of emergencies.

But it would be hard to persuade voters to accept cuts in health, education or welfare to fund defence, and none of the parties are doing so in this election.

Rishi Sunak and Sir Keir Starmer react on the day of the State Opening of Parliament in November 2023. Pic: AP
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Rishi Sunak and Sir Keir Starmer on the day of the State Opening of Parliament in November 2023. Pic: AP

How Starmer’s Gaza stance could lose Labour votes

Concerns about security have risen in opinion polls but it is not a top-tier issue for voters. Traditionally it has been something where the Conservatives have been most trusted but surveys this year show Labour level with or ahead of the Tories.

On the other side of the argument, Labour’s strong line on defence could also cost it some votes.

Since the Hamas terror attacks on 7 October, there has been little difference between Mr Sunak and Sir Keir as they insisted Israel had a right to defend itself, including striking Gaza.

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PM ‘sounding desperate’ over TV debates

In some parts of the country, there is already evidence this could cost Labour votes, particularly where there is a significant Muslim population or a concentration of so-called “urban progressives”.

In May’s local elections, switchers from Labour to the Greens resulted in a record performance by the party. There are estimates that a similar voting pattern in the general election could cost Labour up to a dozen seats.

This would cut into Sir Keir’s hopes of a large majority and it is another reason why Labour will try to skirt divisive foreign policy issues during this campaign.

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Sunak releases election launch video

There is, of course, a possibility that a dramatic and violent development in warfare at home or abroad could galvanize the campaign.

Short of that the responsibilities of national security and foreign policy are set to weigh more heavily on the eventual winner than on the minds of the voters.

Within five days of the general election one of them will have to represent the UK at the NATO Summit in Washington DC from 9 to 11 July.

It is the 75th anniversary of the organisation and is being seen as the most important in its history, with major challenges to confront as a major European war rages in Ukraine.

The week after that Prime Minister Starmer or Sunak will host national leaders from the new European Political Community – an organisation calling out for Brexit Britain to make a major contribution to the defence of the continent.

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UK to require crypto firms to report every customer transaction

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UK to require crypto firms to report every customer transaction

UK to require crypto firms to report every customer transaction

United Kingdom crypto companies will need to collect and report data from every customer trade and transfer beginning Jan. 1, 2026 as part of a broader effort to improve crypto tax reporting, the UK government said.

Everything from the user’s full name, home address and tax identification number will need to be collected and reported for every transaction, including the cryptocurrency used and the amount moved, the UK Revenue and Customs department said in a May 14 statement.

Details of companies, trusts and charities transacting on crypto platforms will also need to be reported.

Failure to comply or inaccurate reporting may incur penalties of up to 300 British pounds ($398.4) per user. The UK Revenue and Customs department said it would inform companies on how to comply with the incoming measures in due course.

However, UK authorities are encouraging crypto firms to start collecting data now to ensure compliance readiness.

The new rule is part of the UK’s integration of the Organisation for Economic Development’s Cryptoasset Reporting Framework to improve transparency in crypto tax reporting.

The changes reflect the UK government’s aim to establish a more robust regulatory framework that supports industry growth while ensuring consumer protection.

Related: Bitwise lists four crypto ETPs on London Stock Exchange

UK Chancellor Rachel Reeves also introduced a draft bill in late April to bring crypto exchanges, custodians and broker-dealers within its regulatory reach to combat scams and fraud.

“Today’s announcement sends a clear signal: Britain is open for business — but closed to fraud, abuse, and instability,” Reeves said at the time.

A study from the UK’s Financial Conduct Authority last November found that 12% of UK adults owned crypto in 2024 — a significant increase from the 4% reported in 2021.

UK’s approach contrasts with EU’s MiCA

The UK’s move to integrate the crypto rules into its existing financial framework contrasts with the European Union’s approach, which introduced the new Markets in Crypto-Assets Regulation framework last year.

According to the MiCA Crypto Alliance, one key difference is that the UK will allow foreign stablecoin issuers to operate in the UK without needing to register.

There will also be no cap on stablecoin volumes, unlike the EU’s approach, which may impose controls on stablecoin issuers to manage systemic risks.

UK to require crypto firms to report every customer transaction
Source: MiCA Crypto Alliance

Magazine: Crypto wanted to overthrow banks, now it’s becoming them in stablecoin fight

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Hong Kong police busts $15M laundering ring that used crypto, 500 bank accounts

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Hong Kong police busts M laundering ring that used crypto, 500 bank accounts

Hong Kong police busts M laundering ring that used crypto, 500 bank accounts

Hong Kong police arrested 12 people involved in a cross-border money laundering scheme that relied on crypto and over 500 stooge bank accounts to launder HK$118 million ($15 million), local news outlets reported.

The syndicate was dismantled on May 15, resulting in the arrest of nine men and three women in mainland China and Hong Kong.

The suspects allegedly recruited others to open bank accounts to receive proceeds from fraud cases, which were then converted into crypto at crypto exchange shops to launder the illicit funds, Hong Kong Commercial Daily reported on May 17.

The criminal organization rented a residential unit in the Hong Kong neighborhood of Mong Kok to plan and carry out its money laundering activities. Of the $15 million laundered, more than $1.2 million was linked to 58 reported fraud cases.

Caught in action

The bust followed police surveillance on May 15, when two recruits left the syndicate’s Mong Kok base — one visiting a bank, the other an ATM — before both went to convert the cash into crypto at a crypto exchange shop in the neighborhood of Tsim Sha Tsui.

Police arrested both individuals on the spot, seizing around HK$770,000 ($98,540) in cash before the funds could be laundered. The other 10 individuals, aged between 20 and 41, were arrested soon after.

Police seized approximately HK$1.05 million ($134,370) in cash, over 560 ATM cards, multiple mobile phones, bank documents and records related to crypto transactions.

Senior Inspector Tse Ka-lun of Hong Kong’s Commercial Crime Bureau claimed that the individuals often used bank accounts from their friends and family to launder the stolen funds. 

Hong Kong reported a 12% year-on-year increase in fraud reports in 2024, with authorities making more than 10,000 fraud-related arrests. Of those arrests, around 73% involved individuals who held stooge bank accounts.

Related: DOJ charges 12 more gamer-turned $263M Bitcoin robbers

The crackdown comes as Hong Kong continues to roll out its crypto regulatory framework to support local innovation, protect consumers and establish itself as a crypto hub.

Hong Kong’s Securities and Futures Commission introduced new rules for crypto exchanges offering staking services in April. Two months earlier, the securities regulator rolled out a roadmap to improve market access, optimize compliance, expand product offerings, strengthen crypto infrastructure and foster relationships with industry players. 

Magazine: Crypto wanted to overthrow banks, now it’s becoming them in stablecoin fight

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Keir Starmer says closer EU ties will be good for UK jobs, bills and borders ahead of key talks

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Keir Starmer says closer EU ties will be good for UK jobs, bills and borders ahead of key talks

Sir Keir Starmer has said closer ties with the EU will be good for the UK’s jobs, bills and borders ahead of a summit where he could announce a deal with the bloc.

The government is set to host EU leaders in London on Monday as part of its efforts to “reset” relations post-Brexit.

A deal granting the UK access to a major EU defence fund could be on the table, according to reports – but disagreements over a youth mobility scheme and fishing rights could prove to be a stumbling block.

The prime minister has appeared to signal a youth mobility deal could be possible, telling The Times that while freedom of movement is a “red line”, youth mobility does not come under this.

His comment comes after Kaja Kallas, the EU’s high representative for foreign affairs, said on Friday work on a defence deal was progressing but “we’re not there yet”.

Sir Keir met European Commission president Ursula von der Leyen later that day while at a summit in Albania.

Prime Minister Sir Keir Starmer with President of the European Commission Ursula von der Leyen ahead of their bilateral meeting as he attends the European Political Community Summit (EPC) in Tirana, Albania. Picture date: Friday May 16, 2025. Leon Neal/PA Wire
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Ursula von der Leyen and Sir Keir had a brief meeting earlier this week. Pic: PA

If agreed, the deal will be the third in two weeks, following trade agreements with India and the US.

More on European Union

Sir Keir said: “First India, then the United States – in the last two weeks alone that’s jobs saved, faster growth and wages rising.

“More money in the pockets of British working people, achieved through striking deals not striking poses.

“Tomorrow, we take another step forward, with yet more benefits for the United Kingdom as the result of a strengthened partnership with the European Union.”

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Conservative leader Kemi Badenoch has said she is “worried” about what the PM might have negotiated.

Ms Badenoch – who has promised to rip up the deal with the EU if it breaches her red lines on Brexit – said: “Labour should have used this review of our EU trade deal to secure new wins for Britain, such as an EU-wide agreement on Brits using e-gates on the continent.

“Instead, it sounds like we’re giving away our fishing quotas, becoming a rule-taker from Brussels once again and getting free movement by the back door. This isn’t a reset, it’s a surrender.”

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