PM facing further rebellions over Rwanda – as backbench Tories call for Downing Street talks

Published

1 year ago

January 17, 2024

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The prime minister could be facing further rebellions from his backbenchers today as MPs return to the Commons to carry on debating the Rwanda bill.

The government insists the proposed legislation – aimed at deterring asylum seekers from crossing the Channel in small boats – is the toughest immigration law in history and will revive the scheme after the UK’s Supreme Court ruled it unlawful late last year.

But some Conservative MPs on the right of the party claim it does not go far enough, pushing for harder measures to limit appeals from asylum seekers and to block any rulings from international courts.

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‘Unity of purpose’ in Tory party, claims minister

Last night, two deputy chairmen of the Tory party and one ministerial aide quit their posts in order to back rebel amendments put forward by veteran MP Sir Bill Cash and former immigration minister Robert Jenrick.

While the amendments were rejected overall by MPs, 60 Conservatives voted in defiance of the government – with further backbench proposals being tabled today.

An overall vote on the bill is also scheduled for this evening, and if around 30 Conservatives vote against it, the legislation could fall.

Rishi Sunak will also face the added pressure of his weekly grilling at Prime Minister’s Questions before the debate even begins.

Former minister Jonathan Gullis joined Mr Jenrick and others in saying he was “prepared” to vote down the Rwanda bill if it remained unamended.

But he told Sky News he hoped to “get into 10 Downing Street today” to “talk it out and find a way forward so we can avoid colleagues choosing to either abstain or go in the opposite lobby”.

Mr Gullis added: “We firmly believe that the prime minister should see the overwhelming support on his backbenches for wanting to toughen this legislation.

“I hope we can get into 10 Downing Street, we can negotiate this, and then we can come to a place where we can tell all colleagues it’s time to go through the aye lobby.”

Asked if they were going to invite the rebels in for talks, a Number 10 source said they wouldn’t comment on private conversations, but “engagement is continuing”.

Illegal immigration minister Michael Tomlinson told Sky News he would be “listening respectfully to colleagues” and he “completely understands” their concerns.

He insisted all the MPs in his party had a “unity of purpose” and were “determined” for the Rwanda bill to be a success, adding this morning: “If you listened and heard and saw what [the rebels] said, they are determined that this policy works.

“They support the prime minister in his aim to stop the boats. He is the one who has the plan to stop the boats.”

The minister continued: “We will see more robust debate in the chamber of the House of Commons this afternoon.

“But I know how my colleagues feel… their concerns are my concerns. And I’m determined that we can get this legislation through, that we can stop the boats, because we have a plan to do that.”

Speaking to reporters, Chancellor Jeremy Hunt also tried to calm the mood, saying: “We are united in the Conservative Party in our belief we need to solve this problem [of Channel crossings].

“Of course, we have lively debates inside the party about how to deliver the Rwanda policy.

“But the big picture is there’s only one major party in British politics that wants to make Rwanda work. That’s the Conservative Party.”

However, Labour’s shadow culture secretary, Thangam Debbonaire, said the internal Tory row showed the “incredibly weak leadership” of Mr Sunak, who couldn’t get his MPs to vote as one last night.

“His plan keeps stumbling,” she told Sky News. “It literally seems to be his only policy at the moment.

“But he isn’t stopping the boats. Nearly 30,000 people came over on small boats last year. He pledged that it would stop in 2023. That’s not stopping it.”

Asked if there would definitely be a vote on the overall bill amid rumours Number 10 could pull it rather than face defeat, Mr Tomlinson focused on procedure – explaining how the parliamentary timetable would allow the vote if the bill remained unamended.

There has also been no hint that Mr Sunak is willing to concede to the rebel demands as of yet, as not only does the government believe it would risk Rwanda pulling out of the scheme, but Conservatives from the more centrist wing of the party have threatened their own rebellion if the law goes too far.

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

Published

2 hours 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

3 hours 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

4 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.