Rishi Sunak to hold Rwanda bill press conference after plan to stop small boat crossings survives Tory rebellion

Published

1 year ago

January 18, 2024

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Prime Minister Rishi Sunak will hold a press conference at 10am after his controversial Rwanda bill passed its latest stage in parliament – despite rebellions from his own backbenchers.

The legislation – which aims to deter asylum seekers from making small boat crossings by threatening deportation to the African nation – passed its third reading in the Commons last night with a majority of 44.

But 11 Tory MPs, including former ministers Suella Braverman and Robert Jenrick, voted against the bill after days of attempts by a larger group of right-wing Conservatives to toughen up the law with their own amendments.

A further 18 Tory MPs abstained from the vote.

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PM to give press conference after Rwanda row

The plan will now head to the Lords for further scrutiny, and is expected to face additional criticism from peers on all sides of the chamber, with a Tory source saying the prime minister was “by no means out of the woods”.

One Conservative frontbench peer told Sky News the government would be “thoroughly beaten” over the Rwanda scheme, adding: “The bill will only be weakened [by the Lords] and that will just throw more grenades onto the green carpets [of the Commons].”

But a Number 10 spokesman said the passing of the bill by MPs “marks a major step in our plan to stop the boats”.

This latest piece of legislation attempting to get the Rwanda scheme off the ground came as a response to the UK’s Supreme Court, who ruled the plan was “unlawful” late last year.

To address the court’s concerns, the bill designates Rwanda as a “safe country”, and it gives ministers the powers to disregard sections of the Human Rights Act to ensure deportation flights get off the ground.

But it does not go as far as allowing them to dismiss interventions from the European Convention on Human Rights (ECHR) entirely – a demand of some on the right.

The government offered limited concessions to rebels over the course of the week in an attempt to keep them on side – including an increase in judges to handle appeals and changes to the civil service code.

But Mr Sunak also had to prevent a possible rebellion from more centrist Tories, who believe going any further would threaten the UK’s international legal obligations on human rights, as well as ensuring the Rwandan government remained content with the proposals.

While some of the prominent figures publicly arguing against the bill fell into line when the crunch vote came late last night – including two MPs who resigned their party posts in order to back rebel amendments – others were willing to vote against the government.

Ms Braverman, who was fired as home secretary in Mr Sunak’s last reshuffle, posted on X that the Rwanda bill would “not stop the boats” in its current form and “leaves us exposed to litigation and the Strasbourg court”.

She added: “I engaged with the government to fix it but no changes were made. I could not vote for yet another law destined to fail.”

Home Office minister Chris Philp told Sky News the rebels had “sincerely held views on how the bill could be strengthened” and were “perfectly entitled to put their ideas forward and to vote for them as they did”.

But he pointed out that when it came to the “critical vote” to move the legislation on, the majority backed the government.

“This is a critical government policy and a critical government pledge,” he added. “The government has a plan, a plan on the economy, a plan on immigration.

“We are delivering that plan. We’re going to stick with that plan and it’s going to work.”

Mr Philp also denied the internal party row was taking up all the prime minister’s time, telling Kay Burley Mr Sunak “can walk and chew gum at the same time”.

But Labour has called the Conservative Party “a shambles”, and remains strongly opposed to the Rwanda bill.

Shadow business secretary Jonathan Reynolds told Sky News: “This is a gimmick that means spending £400m. Nobody has gone to Rwanda. It won’t solve the [small boats] problem. You can’t solve the problem by gimmicks.

“And at the heart of this very serious problem is a conversation about whether you have these gimmicks that won’t do the job or whether you spend the money properly on things like cracking down on the criminal gangs, having a proper returns policy.

“You don’t have millions of pounds spent on people in hotels because you’re processing the system fairly [and] efficiently. That’s what it’s got to be. And anything else, quite frankly, is a gimmick.”

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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.