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Kemi Badenoch has said the Tories are “not doing a deal with Reform” after a Conservative mayor appeared to advocate for a “coming together” of the two rival parties.

The leader of the opposition criticised talk of “stitch ups” ahead of next week’s local elections and said she was instead focused on ensuring that voters have a “credible Conservative offer”.

Speaking to reporters from Stratford-upon-Avon, she said: “We are not doing a deal with Reform. There’s not going to be a pact.

“What we need to do right now is focus on ensuring that voters have a credible Conservative offer.

“When we start talking about stitch ups before an election it sounds as if we are not thinking about the people out there but just about how we win.

“Winning is just the first step – we need to talk about how we are going to deliver for the people of this country.”

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PM questions Badenoch on Jenrick audio at PMQs

Her words come after Tees Valley mayor Ben Houchen suggested his party may have to join forces with Nigel Farage’s Reform UK.

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In an interview with Politico, he said: “I don’t know what it looks like. I don’t know whether it’s a pact. I don’t know whether it’s a merger … [or] a pact of trust and confidence or whatever.

“But if we want to make sure that there is a sensible centre-right party leading this country, then there is going to have to be a coming together of Reform and the Conservative Party in some way.”

He added: “What that looks like is slightly above my pay grade at the moment.”

The intervention from the Conservatives’ last remaining mayor will create further trouble for Ms Badenoch after shadow justice secretary Robert Jenrick vowed to “bring this coalition together” to ensure that Conservatives and Reform UK are no longer competing for votes by the time of the next election.

According to a leaked recording obtained by Sky News, Mr Jenrick – who lost the Tory leadership campaign to Ms Badenoch – said he would try “one way or another” to make sure the two right-wing parties do not end up handing a second term to Sir Keir Starmer.

Mr Jenrick has denied his words amounted to calling for a pact with Reform – and told Good Morning Britain: “I’ve said time and again that I want to put Reform out of business … I want to send Nigel Farage back to retirement.”

Read more:
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‘Consensus has got to be rebuilt’: Harriet Harman reacts to gender ruling

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Farage: Jenrick ‘shaping up’ to be Tory leader

Questioned about Mr Jenrick’s remarks, Reform UK leader Nigel Farage told Sky News he was not going to do a deal with the Conservative Party.

He said: “I mean he’s clearly shaping himself up to be the next leader of the Conservative Party. He doesn’t care what internal division he causes within the Parliamentary Party.

“But he’s actually mistaken. We are not going to do a deal with a Conservative Party that gave us record tax levels since the war, mass migration, I mean I could go on.”

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South Korea to impose bank-level liability on crypto exchanges after Upbit hack: Report

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South Korea to impose bank-level liability on crypto exchanges after Upbit hack: Report

South Korea is preparing to impose bank-level, no-fault liability rules on crypto exchanges, holding exchanges to the same standards as traditional financial institutions amid the recent breach at Upbit.

The Financial Services Commission (FSC) is reviewing new provisions that would require exchanges to compensate customers for losses stemming from hacks or system failures, even when the platform is not at fault, The Korea Times reported on Sunday, citing officials and local market analysts.

The no-fault compensation model is currently applied only to banks and electronic payment firms under Korea’s Electronic Financial Transactions Act.

The regulatory push follows a Nov. 27 incident involving Upbit, operated by Dunamu, in which more than 104 billion Solana-based tokens, worth approximately 44.5 billion won ($30.1 million), were transferred to external wallets in under an hour.

Related: Do Kwon says five-year US sentence is enough as he faces 40 years in South Korea

Crypto exchanges face bank-level oversight

Regulators are also reacting to a pattern of recurring outages. Data submitted to lawmakers by the Financial Supervisory Service (FSS) shows the country’s five major exchanges, Upbit, Bithumb, Coinone, Korbit and Gopax, reported 20 system failures since 2023, affecting over 900 users and causing more than 5 billion won in combined losses. Upbit alone recorded six failures impacting 600 customers.

The upcoming legislative revision is expected to mandate stricter IT security requirements, higher operational standards and tougher penalties. Lawmakers are weighing a rule that would allow fines of up to 3% of annual revenue for hacking incidents, the same threshold used for banks. Currently, crypto exchanges face a maximum fine of $3.4 million.

The Upbit breach has also drawn political scrutiny over delayed reporting. Although the hack was detected shortly after 5 am, the exchange did not notify the FSS until nearly 11 am. Some lawmakers have alleged the delay was intentional, occurring minutes after Dunamu finalized a merger with Naver Financial.

Related: South Korea targets sub-$680 crypto transfers in sweeping AML crackdown

South Korea pushes for stablecoin bill

As Cointelegraph reported, South Korean lawmakers are also pressuring financial regulators to deliver a draft stablecoin bill by Dec. 10, warning they will push ahead without the government if the deadline is missed.