Rwanda bill: Keir Starmer attacks Tory ‘farce’ – as Rishi Sunak insists the small boats plan ‘will work’

Published

1 year ago

January 17, 2024

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Labour leader Sir Keir Starmer has attacked the “farce” playing out in the Conservative Party over the government’s Rwanda bill, claiming Rishi Sunak’s plan had been “brutally exposed” by his own MPs.

Ministers insist the scheme to deport asylum seekers who arrive via small boats is “the most robust” immigration legislation ever presented to the Commons, and will revive the plan after it was ruled unlawful by the Supreme Court late last year.

But right-wing factions within the Tories want it to go even further – especially on limiting appeals and disapplying international law – and 60 MPs rebelled against the government on Tuesday night to support toughening up the bill.

Follow live: Starmer drops expletive in criticism of Rwanda plan

Further amendments are being debated today, with more rebellions on the cards for later – including threats from some senior Tories that they could vote down the bill in its entirety if ministers don’t accept their proposals.

But Mr Sunak would face further rebellion from the centrist wing of his party if he conceded to the right-wing demands.

‘Bald men scrapping over a single broken comb’

Speaking at Prime Minister’s Questions (PMQs) shortly before the second day of debate on the legislation began, Sir Keir compared the Conservatives to “hundreds of bald men scrapping over a single broken comb”.

The Labour leader said the “open revolt” within the Tories against “his policy, each other and reality” proved the “gimmick” of the Rwanda bill was set to fail.

“It’s such utterly pathetic nonsense,” he said, adding: “If the prime minister can’t even persuade his own MPs it is worth supporting him… why on earth should anyone else think differently?”

But Mr Sunak stood by his new legislation, despite the rebellions and the criticism, telling the Commons: “I have absolute conviction that the plan we have in place will work, absolute conviction, because I think it is important that we grip this problem.”

He said it was “important that we have a working deterrent” to put asylum seekers off from making the dangerous journey, and claimed it had legal backing too.

“Four eminent KCs have said it is undoubtedly the most robust piece of immigration legislation this parliament has seen,” said the prime minister.

“And a former Supreme Court justice has been clear that the bill works too.”

Rebels seeking Downing Street talks

His appearance at PMQs was Mr Sunak’s last chance to publicly appeal to his backbenchers to get behind the government’s plans before the second day of debate began.

However, one of the rebels, former education minister Jonathan Gullis, told Sky News earlier that he and his allies were keen 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”.

The government has offered limited concessions to the rebels, including increasing the number of judges to take on deportation appeals, and hinting they could change the civil service code to ensure ministers’ decisions over disapplying international human rights law would be followed.

But further amendments – specifically around injunctions by international courts grounding flights to Rwanda – are expected today, and more rebellions could take place.

Some Tory backbenchers have even said they are prepared to vote down the bill when it is put to parliament later this evening, including former immigration minister Robert Jenrick, Mr Gullis and ex-housing secretary Simon Clarke.

But it will take around 30 Conservatives to vote against it for the bill to fall.

After six hours of debate on Tuesday, 60 Conservative MPs voted in defiance of the government to back amendments limiting appeals against deportation.

A second amendment around the same issue, put forward by Mr Jenrick, also secured the support of 58 Tories.

Two deputy chairmen of the Tory party and one ministerial aide quit their posts in order to back the rebels.

However, the majority of MPs from all parties voted against the proposals, meaning they were not added to the bill.

Meanwhile, at the World Economic Forum, the president of Rwanda has cast doubt on the future of the scheme.

Asked by Sky News’s Ed Conway if the deal between the two countries – costing the British government £240m so far – was working, Paul Kagame said it was a matter for the UK.

And asked if Rwanda was a safe country for refugees, he said again: “Ask the UK – it’s the UK’s problem.”

Speaking to the Guardian, however, Mr Kagame added: “There are limits for how long this can drag on.

“The money is going to be used on those people who will come. If they don’t come we can return the money.”

Politics

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

Published

4 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

5 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

6 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.