After months of delay, parliamentary bickering and legal challenges, Rishi Sunak’s Rwanda bill is set to become law.
Legislation for the prime minister’s controversial plan to deport asylum seekers to the landlocked African country cleared parliament last night after a lengthy battle.
The policy has been plagued by setbacks since it was first announced two years ago, with thousands of people arriving on Kent beaches aboard small boats all the while.
So what is the Rwanda bill and why is it so controversial? Here are some of the key questions, answered.
What is the Rwanda asylum plan?
Rishi Sunak’s promise to “stop the boats” is one of five pledges he has staked his premiership on.
Key to this is the Rwanda scheme, which would involve some asylum seekers being sent to Rwanda to have their asylum claims processed there.
If successful, they can be allowed to stay in Rwanda or seek asylum in another country. But they would not be able to apply to return to the UK.
Ministers say the policy will act as a deterrent to people thinking of travelling to the UK “illegally” (though whether or not crossing the English Channel in a small boat is actually illegal is complicated).
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Image: A group of people are brought to Dover onboard a Border Force vessel. Pic: PA
This would be more than two years since the first flight attempted under the deal was grounded amid last-minute legal challenges.
No asylum seekers have yet been sent to Rwanda.
While he refused to go into “sensitive” operations details on Monday, Mr Sunak did outline a number of measures the government was taking to prepare for the first flights to take off.
He said there were now 2,200 detention spaces and that 200 dedicated caseworkers had been trained to process claims quickly.
Around 25 courtrooms have been made available and 150 judges will provide 5,000 sitting days, he added.
Mr Sunak also said there were 500 “highly trained individuals ready to escort illegal migrants all the way to Rwanda, with 300 more trained in the coming week”.
In November, the Rwanda plan was ruled unlawful by the UK’s Supreme Court, which said those being sent to the country would be at “real risk” of being returned home, whether their grounds to claim asylum were justified or not – breaching international law.
Is Rwanda a safe country?
Much of the debate around the policy – putting aside differing views on whether it is effective or ethical – centres around the question of whether Rwanda is considered a “safe country”.
The government insists it is, although it’s worth pointing out that the UK granted asylum applications to 15 people from Rwanda last year.
According to Human Rights Watch, critics of the ruling political party in Rwanda have been “arrested, threatened, and put on trial”. Some said they were tortured in detention, the organisation added.
Image: Rishi Sunak’s promise to ‘stop the boats’ is one of five pledges he has staked his premiership on
Who will be affected by the Rwanda scheme?
The Home Office plans to use the agreement with Rwanda to remove people who make dangerous journeys to the UK and are considered “inadmissible” to the UK’s asylum system – and will include people who have arrived irregularly since 20 July last year.
People whom the Home Office wishes to transfer to Rwanda will be identified and referred to the Rwandan authorities on a case-by-case basis, after an initial screening process following arrival in the UK, the government has said.
Although the agreement focuses on asylum seekers, under the treaty people who have made unauthorised journeys to the UK but not claimed asylum can be relocated to Rwanda as well.
On Monday, the Rwanda bill finally passed through the Commons and Lords and is now set to become law.
The legislation was introduced by the government in the wake of November’s Supreme Court ruling which had declared that Rwanda was not safe for refugees.
Since then, the government has signed a new treaty with Rwanda which it says contains additional safeguards for people relocated.
With the new bill, parliament was asked to declare that Rwanda must be treated as safe in order to render the relocation plan lawful in UK domestic law.
What happens now?
The bill is now headed for royal assent after passing through parliament, but it’s likely to still face various challenges.
Campaigners opposing the plans, and individual asylum seekers who are told they are to be sent to Rwanda, could look to take the government to court again in an attempt to stop flights.
Whether any legal challenges could be successful in light of the new law remains to be seen.
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Rwanda plan an ‘expensive gimmick’
How much has this all cost?
A lot.
An investigation by Whitehall’s spending watchdog said the cost of the Rwanda scheme could rise to half a billion pounds, plus hundreds of thousands more for each person deported.
The government has refused to say how much more money, on top of the £290m already confirmed, that the UK had agreed to pay Rwanda under the deal. However, a National Audit Office report revealed millions more in spending including £11,000 for each asylum seeker’s plane ticket.
What are people opposed to the Rwanda asylum plan saying now the bill was passed?
The passing of the bill has sparked fresh condemnation from charities and other organisations.
Amnesty International said it will “leave a stain on this country’s moral reputation”.
Sacha Deshmukh, Amnesty International UK’s chief executive, added: “The bill is built on a deeply authoritarian notion attacking one of the most basic roles played by the courts – the ability to look at evidence, decide on the facts of a case and apply the law accordingly.
“It’s absurd that the courts are forced to treat Rwanda as a ‘safe country’ and forbidden from considering all evidence to the contrary.”
South Korea is likely to end the year without a framework for locally issued stablecoins, amid ongoing disputes over the role of banks in stablecoin issuance.
The country’s central bank, the Bank of Korea (BOK), and other financial regulators have clashed over the extent of banks’ involvement in issuing Korean won-backed stablecoins, delaying a framework widely expected to arrive in late 2025, the Korea JoongAng Daily reported Tuesday.
According to the BOK, a consortium of banks should own at least 51% of any stablecoin issuer seeking regulatory approval in South Korea, while regulators are more open to the involvement of diverse industry players.
“Banks, which are already under regulatory oversight and have extensive experience handling anti-money laundering protocols, are best positioned to serve as majority shareholders in stablecoin issuers,” a BOK official reportedly said.
Banks should play leading role to curb stablecoin risks, BOK says
The central bank said that giving banks a leading role in stablecoin issuance would help mitigate potential risks to financial and foreign exchange stability.
The BOK also warned that allowing non-bank companies to take the lead in issuing stablecoins could undermine existing regulations that bar industrial firms from owning financial institutions, as stablecoins effectively function like deposit-taking instruments by collecting funds from users.
Financial Supervisory Service Governor Lee Chan-jin, Bank of Korea Governor Rhee Chang-yong, Deputy Prime Minister Koo Yun-cheol and Financial Services Commission Chairman Lee Eog-weon (from left to right). Source: Korea JoongAng Daily
“Allowing non-bank companies to issue stablecoins is essentially equivalent to permitting them to engage in narrow banking — simultaneously issuing currency and providing payment services,” the BOK reportedly wrote in a recent stablecoin study. It added that stablecoins issued by technology firms could also pose monopoly risks.
According to a report by the local industry publication Bloomingbit, the National Assembly’s Political Affairs Committee is now reviewing three bills related to stablecoin issuance submitted by ruling and opposition party lawmakers on Monday.
The proposed legislation includes two bills put forward by the ruling Democratic Party of Korea (DPK) and one from the opposition People Power Party (PPP).
While all three proposed bills stipulate a minimum capital of 5 billion won ($3.4 million) for issuers, some of the disputed areas include whether stablecoin issuers should be allowed to offer interest on holdings.
“While Kim Eun-hye’s bill allows interest payments, Kim Hyun-jung’s bill and Ahn Do-geol’s bill seek to prohibit them,” the report states.
As South Korean lawmakers remain divided over a stablecoin framework, local tech giants such as Naver are accelerating stablecoin-related initiatives amid a potential merger with Dunamu, operator of the major exchange Upbit.
According to local reports, Naver Financial is set to launch a stablecoin wallet next month in collaboration with Hashed and the Busan Digital Exchange.
A former policy lawyer at crypto exchange Coinbase is running for attorney general of New York. His bid to represent the crypto industry’s interests runs against a strong Democratic bias and concerns over industry influence in policymaking.
Khurram Dara, who also worked as a regulatory and policy principal at Bain Capital Crypto, announced his campaign on Nov. 21. In a video accompanying his post on X, Dara said he wants to stop the supposed “lawfare” that current Attorney General (AG) Letitia James is waging against the crypto industry.
Dara said that the reportedly unfair treatment of the industry drives up costs for New Yorkers. New York City Mayor-elect Zohran Mamdani recently won his election with a focus on cost-of-living issues.
Dara’s campaign faces strong headwinds. James won her last two elections by a wide margin, and there are broader concerns over how much the crypto lobby is influencing policymaking.
Khurram Dara speaking with the Erie County GOP in October. Source: Khurram Dara
Former Coinbase lawyer to oppose AG Letitia James
According to Dara, James’ policies hurt New York’s business climate and drive prices higher.
“When you play politics with the law, when you regulate by enforcement. When you use lawsuits to make policy that increases the cost of doing business, that increases legal and insurance costs; that increases prices, which hurts small businesses, new entrepreneurs and working-class New Yorkers the most,” Dara said in his announcement video.
As AG, Dara would curb the powers of the state’s Martin Act. The statute gives the AG’s office broad powers to investigate and prosecute securities and real estate fraud. Critically, it allows the AG to prosecute these activities “detrimental to the public without requiring proof of intentional or negligent conduct.”
Dara and other critics claim that James has used this act for her own political purposes, rather than as a neutral enforcement tool.
Crucially for the cryptocurrency industry, Dara wants to reexamine the BitLicense, the state’s regulatory regime for companies involved in digital assets. BitLicense holds stricter standards for reporting, licensing and compliance than other states. Dara and other critics claim that these rules have driven crypto companies from the city. In his announcement video, Dara called the BitLicense “unlawful.”
But Dara faces an uphill battle. He’s running as a Republican in a state that hasn’t seen a Republican AG in nearly 30 years. Dennis Vacco, the last Republican to hold the office, lost to Eliot Spitzer in 1998.
In 2018, when James was first elected to the office, she defeated her opponent, Keith Wofford, by almost 20 percentage points. The gap narrowed in 2022, but she still won out over Republican Michael Henry 54.6% to 45.37%.
Historical tendencies aside, overall approval of Republicans has been dropping nationwide, and New York City, a crucial metropolitan area to secure for an AG candidate, just voted for a progressive Democratic mayor, Zohran Mamdani.
Dara’s challenge also comes at a time when the interests of the crypto lobby are increasingly represented in politics, with some of its most notable actors becoming overtly political.
Since then, the industry’s interests have become well-represented in Washington. Landmark legislation like the GENIUS Act, which regulates stablecoins, has passed. The industry is also pushing hard for Congress to pass the CLARITY/Responsible Financial Innovation Act by year’s end.
Lobbies are ubiquitous in Washington; crypto is no exception. Crypto lobbying operates with breakneck speed, which has raised concerns over regulatory capture — i.e., when a regulatory body or agency serving the public interest is controlled by the industry that it is supposed to regulate.
Fundraising has also increased apace. Gemini founders Cameron and Tyler Winklevoss have shelled out tens of millions of dollars this year alone. Their funding has become partisan, with millions going to organizations fighting to keep the Republicans’ slim majority in Congress.
This tendency has some in the industry concerned that, when the partisan pendulum eventually swings back in the Democratic direction, a Republican-aligned crypto industry could find itself in a precarious political situation.
Crypto-friendly Democratic Representative Sam Liccardo told Politico in early October, “I don’t think anybody in this town would recommend that an industry put their eggs in one party’s basket.”
How the crypto connection, complete with its growing political connections, will affect Dara’s campaign remains to be seen. His campaign is still in its early days; it doesn’t appear to have a website, just a donation link with a campaign logo, which resembles the logo Mamdani used in his mayoral race.
Mamdani’s lack of position on crypto didn’t appear to affect his popularity with voters. Nor did ex-Governor Andrew Cuomo’s last-minute crypto Hail Mary help him secure the lead. There’s a good chance New Yorkers’ choice will boil down to other pressing issues.
Banking giant JPMorgan Chase’s decision to cut ties with the CEO of Bitcoin payments company Strike is reigniting concerns about a renewed wave of US “debanking,” an issue that haunted the crypto industry during the 2023 banking turmoil.
Jack Mallers, CEO of the Bitcoin (BTC) Lightning Network payments company Strike, said Sunday on X that JPMorgan closed his personal accounts without explanation.
“Last month, J.P. Morgan Chase threw me out of the bank,” Mallers wrote. “Every time I asked them why, they said the same thing: We aren’t allowed to tell you.”
Cointelegraph has contacted JPMorgan Chase for comment.
“Operation Chokepoint 2.0 regrettably lives on,” said US Senator Cynthia Lummis in a Monday X post. Actions like JP Morgan’s “undermine the confidence in traditional banking” while sending the digital asset industry overseas, she said, adding:
“It’s past time we put Operation Chokepoint 2.0 to rest to make America the digital asset capital of the world.”
Other crypto founders, including Caitlin Long of Custodia Bank, said the debanking efforts targeting crypto may persist until January 2026, pending the appointment of a new Federal Reserve governor.
“Trump won’t have the ability to appoint a new Fed governor until January. So, therefore, you can see the breadcrumbs leading up to a potentially big fight,” Long said during Cointelegraph’s Chainreaction daily X show on March 21.
Long’s Custodia Bank was repeatedly targeted by US debanking efforts, which cost the company months of work and “a couple of million dollars,” she said.
The collapse of crypto-friendly banks in early 2023 sparked the first allegations of Operation Chokepoint 2.0, during which at least 30 technology and cryptocurrency founders were reportedly denied access to banking services under the administration of former President Joe Biden.
In August 2025, President Donald Trump signed an executive order related to debanking, aiming to prevent banks from cutting off services to politically unfavorable industries, including the cryptocurrency sector.
Debanking concerns took another turn in January, when Lummis’s office was contacted by an anonymous whistleblower, alleging that the Federal Deposit Insurance Corporation (FDIC) was “destroying material” related to Operation Chokepoint 2.0.
“The FDIC’s alleged efforts to destroy and conceal materials from the U.S. Senate related to Operation Chokepoint 2.0 is not only unacceptable, it is illegal,” said Lummis in a letter published on Jan. 16, threatening “swift criminal referrals” if the wrongdoing was uncovered.
Senator Lummis’s open letter to FDIC Chair Marty Gruenberg. Source: Lummis.senate.gov
Traditional financial institutions have long criticized crypto firms for enabling illicit finance. But US banks have themselves paid more than $200 billion in fines over the past two decades for compliance failures, according to data compiled by Better Markets and the Financial Times.
Fines and penalties paid by the six leading US banks over the past 20 years. Source: Better Markets/FT
Bank of America reportedly accounted for about $82.9 billion of those penalties, while JPMorgan Chase paid more than $40 billion.