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This week’s two by-elections had something for everyone – except Rishi Sunak’s Conservatives.

Sir Keir Starmer’s Labour Party has now broken into the record books with six by-election gains from the Conservatives, beating New Labour’s performance in the run-up to the 1997 Election.

Reform UK got more than 10% of the votes in both constituencies.

The Liberal Democrats lost two deposits, with less than 5% of votes cast each time. But even they have something to celebrate, according to one polling analyst.

Peter Kellner argues that their four by-election victories over the Tories since 2019 show that they are much better at concentrating their vote than they used to be – when they regularly clocked up 10% plus support across the country with nothing to show for it.

Reform could be falling into a similar trap with significant minority support spread nationwide, enough to damage the Conservatives without a sniff of winning a seat.

Damien Egan reacts as he is surrounded by his supporters, after he won the Kingswood Parliamentary by-election, at Kingswood Park.
Pic: Reuters
Image:
Damien Egan won the Kingswood by-election for Labour.
Pic: Reuters

Labour Party candidate Gen Kitchen celebrates with Labour MP for Chesterfield Toby Perkins after being declared winner in the Wellingborough by-election at the Kettering Leisure Village, Northamptonshire.
Image:
Labour’s Gen Kitchen celebrates after being declared winner in the Wellingborough by-election. Pic: PA

No wonder Nigel Farage is talking about “uniting the centre-right vote” of Conservatives and Reform, without committing himself personally to fight in the approaching general election.

Jacob Rees-Mogg has taken up the call for the two right-wing groupings to come together.

Conservative MP Dame Andrea Jenkyns has leapt on the by-election defeats in Kingswood and Wellingborough to renew her call for Sunak to be replaced.

The prime minister must be wondering why his MPs keep inflicting damage on their party through their own behaviour.

All six of Labour’s by-election gains were precipitated by voluntary or forced resignations by Conservative MPs.

Prime Minister Rishi Sunak reacts to by-election results
Image:
Prime Minister Rishi Sunak reacts to last week’s by-election results

The tables will be turned in the next by-election in just 10 days’ time, when Labour is defending the constituency of Rochdale in Lancashire and the party is certain to be the victim of a technical knock-out because it no longer has a candidate.

Starmer’s discomfort in Rochdale and the continued agony of political death by many by-election cuts explain why there is growing speculation that the prime minister may call the general election sooner rather than later in the year, as he has suggested.

Rochdale is an unholy mess for Labour, which exposes one of the most painful divisions in the party.

Labour has held the seat since 2005. Tony Lloyd, who died last month, held it in 2019 with more than half the votes cast.

In its haste to make the best of a sure thing, Labour rushed to hold the vote to find a replacement MP.

Azhar Ali, a local council big wig, was chosen quickly as the Labour candidate. Too quickly, it turns out.

Labour candidate for Rochdale, Azhar Ali (left), is joined by Mayor of Manchester Andy Burnham in Rochdale town centre as he launches his campaign for the up-coming Rochdale by-election, triggered by the death of Sir Tony Lloyd. Picture date: Wednesday February 7, 2024.
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Labour’s former candidate for Rochdale, Azhar Ali. Pic: PA

The Mail on Sunday and then The Daily Mail exposed comments about the Israel-Gaza conflict which he had made at Labour gatherings, in clear violation of party policy.

Ali had embraced conspiracy theories that Israel allowed the 7 October attacks to happen and made accusations about Jewish influence in the media.

He later issued an “unreserved” apology, saying the comments were “deeply offensive, ignorant, and false”.

After an agonising weekend when Labour leaders tried to keep Ali as their official candidate, he was cut loose along with the candidate in neighbouring Hyndburn for similar comments.

It is easy to see why Starmer was reluctant to act. Nominations for the Rochdale by-election had closed.

Labour was stuck with Ali on the ballot paper as their candidate, come what may. It was too late to select a substitute.

Labour must sit it out for the remainder of the campaign, as Ali presses on as an independent. If he wins, he will not receive the Labour whip.

This will automatically exclude him from being the Labour candidate at the approaching general election.

The party leadership could then impose Paul Waugh as the Labour candidate.

In a move which surprised many, Waugh gave up a career as a top political journalist to stand for selection in this by-election – unsuccessfully as it turned out.

This awkward outcome is probably the best that Labour can hope for.

Two controversial ex-Labour MPs are also standing in the by-election.

Simon Danczuk won Rochdale for Labour in 2010 and then 2015. But he was suspended from the party shortly afterwards for sexting a 17-year-old girl. This time, Danczuk is standing for Reform UK.

The candidacy of George Galloway is of much greater concern.

File photo dated 02/07/21 of George Galloway who has said he is confident a judge will hear his legal challenge against the Batley and Spen by-election result, despite the initial deadline for challenging his defeat having now passed. Issue date: Friday August 6, 2021.
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George Galloway. File pic: PA

Since his first election in 1987, Galloway has been an MP in four constituencies: Glasgow Hillhead/Kelvin for Labour, and Bethnal Green & Bow, and Bradford West, for the Respect Party.

Galloway is pugnacious and articulate, and he specialises in fighting highly charged by-elections.

He is highly litigious and willing to take on his critics. He takes a close interest in the Middle East and is pro-Palestinian.

There have been allegations of antisemitism against him – claims he has strongly denied and even once labelled “outrageous”.

Roughly a third of the population in Rochdale has a Muslim background. As Ali’s comments showed, the Israel-Gaza conflict has already inflamed passions.

Opinion polls show that a clear majority of the British public does not take sides in the current conflict.

Of the remainder, around 20% each sympathise with Israel and the Palestinians. But the balance among Labour activists favours the Palestinians.

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Starmer: ‘People want change’

Rooting out the antisemitism which characterised Labour during Jeremy Corbyn’s far-left leadership is one of Starmer’s signal achievements.

Rough justice has meant that figures such as Corbyn, Diane Abbott and now Ali have been kicked out of the party.

But tensions have mounted as Israel’s high-casualty counteroffensive continues.

Read more from Sky News:
Scottish Labour unanimously backs immediate ceasefire in Gaza
Ukrainians offered 18-month visa extension to stay in UK

In the past, Labour has benefitted from strong support in British Pakistani and Bangladeshi communities. In a handful of constituencies, this has been decisive.

Starmer is not pleasing many in his party by lining its Middle East policy up close to the government’s own position.

The Conservatives certainly are not going to give him any credit for backing them up.

Even without the divisive return of Galloway, Conservatives are already saying that the developments in Rochdale reveal that it is the same old Labour Party underneath, for all the changes supposedly wrought by Starmer.

Rochdale means chronic by-election pain for Starmer. There is no end to agony in sight for Sunak either.

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How Labour’s latest row unfolded

There is another by-election in the offing in Lancashire in the marginal constituency of Blackpool South

The Commons Standards Committee has recommended a potentially by-election-triggering 35-day suspension for the Conservative MP Scott Benton over lobbying and corruption allegations.

Voters do not like by-elections in grubby circumstances. They are inclined to punish the incumbent, but the reputation of all politics takes a hit.

The excuses Sunak gave this weekend for the Tory defeats in Kingswood and Wellingborough do not stand up.

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With the general election imminent, these were not “midterm by-elections”. Nor was turnout exceptionally low for such contests. The exception was the massive scale of the drop in the Conservative vote.

The quickest way to make it stop would be to call that general election.

In the past few days, keen observers report an upsurge in activity by those involved in running the Tory campaign.

While Starmer is mired in Rochdale, a giveaway budget on 6 March as the springboard to a May election must remain a distinct possibility – before it gets any worse.

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Meta gets EU regulator nod to train AI with social media content

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Meta gets EU regulator nod to train AI with social media content

Meta gets EU regulator nod to train AI with social media content

Tech giant Meta has been given the green light from the European Union’s data regulator to train its artificial intelligence models using publicly shared content across its social media platforms.

Posts and comments from adult users across Meta’s stable of platforms, including Facebook, Instagram, WhatsApp and Messenger, along with questions and queries to the company’s AI assistant, will now be used to improve its AI models, Meta said in an April 14 blog post.

The company said it’s “important for our generative AI models to be trained on a variety of data so they can understand the incredible and diverse nuances and complexities that make up European communities.”

Technology, European Union, Social Media, Data, Meta

Meta has a green light from data regulators in the EU to train its AI models using publicly shared content on social media. Source: Meta

“That means everything from dialects and colloquialisms, to hyper-local knowledge and the distinct ways different countries use humor and sarcasm on our products,” it added.

However, people’s private messages with friends, family and public data from EU account holders under the age of 18 are still off limits, according to Meta.

People can also opt out of having their data used for AI training through a form that Meta says will be sent in-app, via email and “easy to find, read, and use.”

EU regulators paused tech firms’ AI training plans

Last July, Meta delayed training its AI using public content across its platforms after privacy advocacy group None of Your Business filed complaints in 11 European countries, which saw the Irish Data Protection Commission (IDPC) request a rollout pause until a review was conducted.

The complaints claimed Meta’s privacy policy changes would have allowed the company to use years of personal posts, private images, and online tracking data to train its AI products.  

Meta says it has now received permission from the EU’s data protection regulator, the European Data Protection Commission, that its AI training approach meets legal obligations, and the company continues to engage “constructively with the IDPC.”

“This is how we have been training our generative AI models for other regions since launch,” Meta said.

“We’re following the example set by others, including Google and OpenAI, both of which have already used data from European users to train their AI models.”

Related: EU could fine Elon Musk’s X $1B over illicit content, disinformation

An Irish data regulator opened a cross-border investigation into Google Ireland Limited last September to determine whether the tech giant followed EU data protection laws while developing its AI models.

X faced similar scrutiny and agreed to stop using personal data from users in the EU and European Economic Area last September. Previously, X used this data to train its artificial intelligence chatbot Grok. 

The EU launched its AI Act in August 2024, establishing a legal framework for the technology that included data quality, security and privacy provisions. 

Magazine: XRP win leaves Ripple a ‘bad actor’ with no crypto legal precedent set

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South Korea blocks 14 crypto exchanges on Apple Store — Report

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South Korea blocks 14 crypto exchanges on Apple Store — Report

South Korea blocks 14 crypto exchanges on Apple Store — Report

South Korea is expanding a ban on digital asset firms’ applications servicing its citizens. On April 11, the country’s Financial Services Commission (FSC) announced that 14 crypto exchanges were blocked on the Apple store. Among the affected exchanges are KuCoin and MEXC.

The report, which was made public on April 14, says the banned exchanges were allegedly operating as unregistered overseas virtual asset operators. The report also states that the Financial Information Analysis Institution (FIU) will continue to promote the blocking of the apps and internet sites of such operators to prevent money laundering and user damage.

The request to block applications on the Apple Store comes after Google Play blocked access to several unregistered exchanges on March 26. KuCoin and MEXC were also targeted during the blocking of the Google Play apps. The FSC published a list of 22 unregistered platforms operating in the country, with 17 of them already blocked on Google’s marketplace.

South Korea blocks 14 crypto exchanges on Apple Store — Report

The 17 crypto exchanges blocked on Google Play. Source: FSC

According to the FSC report, users will not be able to download the apps on the Apple Store, while existing users will not be able to update the apps. The FSC notes that “unreported business activities are criminal punishment matters” with penalties of up to five years in prison and a fine of up to 50 million won ($35,200).

FIU considers sanctions against unregistered VASPs

On March 21, South Korean publication Hankyung reported that the FIU and the FSC were considering sanctions against crypto exchanges operating in the country without registration with local regulators. The sanctions included blocking access to the companies’ apps.

In South Korea, operators of crypto sales, brokerage, management, and storage must report to the FIU. Failure to comply with registration and reports is subject to penalties and sanctions.

Related: South Korea reports first crypto ‘pump and dump’ case under new law

The latest sanctions come as crypto is reaching a “saturation point” in South Korea. As of March 31, crypto exchange users in the country passed 16 million — equivalent to over 30% of the population. Industry officials predict that the number could surpass 20 million by the end of 2025.

Over 20% of South Korean public officials hold cryptocurrencies, with the total amount reaching $9.8 million on March 27. The assets varied and included Bitcoin (BTC), Ether (ETH), XRP (XRP), and Dogecoin (DOGE).

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Spot Solana ETFs to launch in Canada this week

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Spot Solana ETFs to launch in Canada this week

Spot Solana ETFs to launch in Canada this week

Spot Solana exchange-traded funds (ETFs) are set to launch in Canada on April 16, according to Bloomberg analyst Eric Balchunas. 

In an X post on April 14, the analyst shared a private client note from TD Bank, a Canadian financial institution, claiming the Ontario Securities Commission (OSC) greenlighted asset managers Purpose, Evolve, CI and 3iQ to issue ETFs holding Solana (SOL).

The OSC did not immediately respond to Cointelegraph’s request for comment.

Canada does not have a federal securities agency, with its territories and provinces applying their own securities laws. Toronto’s securities exchange is regulated by Ontario’s OSC.

The ETFs are permitted to stake a portion of the SOL holdings for added yield, Balchunas said, adding that the upcoming listings are “our first look at the alt coin race.” 

Spot Solana ETFs to launch in Canada this week

Source: Eric Balchunas

Related: SEC approves options on spot Ether ETFs

Waiting on US approval

The US Securities and Exchange Commission (SEC) has acknowledged dozens of applications to list ETFs holding alternative cryptocurrencies, or “altcoins,” but so far has only approved funds holding spot Bitcoin (BTC) and Ether (ETH) for trading. 

Staking is still off limits for US crypto ETFs. Bloomberg analyst James Seyffart said Ether ETFs could be greenlighted to start staking as soon as May, but the process may take months longer. 

However, investors’ demand for altcoin ETFs may be weaker than for funds holding core cryptocurrencies, Katalin Tischhauser, crypto bank Sygnum’s research head, told Cointelegraph in August.

“[T]here is all this frothy excitement in the market about these ETFs coming, and no one can point to where substantial demand is going to come from,” Tischhauser told Cointelegraph. 

Spot Solana ETFs to launch in Canada this week

Volatility Shares’ SOL futures ETF has roughly $5 million in net assets. Source: Volatility Shares

In March, asset manager Volatility Shares launched the first ETFs to track Solana’s performance using financial derivatives. 

Volatility Shares Solana ETF (SOLZ) has seen a lukewarm reception, attracting only around $5 million in net assets as of April 14, according to its website. 

“FWIW, the 2 solana ETFs in US (which track futures so not a perfect guinea pig) haven’t done much. Very little in aum. The 2x XRP already has more aum than both the solana ETFs and it came out after,” Balchunas said. 

Balchunas added that he “[w]ouldn’t read a ton into it” as a predictor for spot SOL ETFs. 

Magazine: Bitcoin eyes $100K by June, Shaq to settle NFT lawsuit, and more: Hodler’s Digest, April 6–12

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