Charges considered in election date betting scandal

Published

6 months ago

November 18, 2024

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Up to five people – possibly including a politician – could face prosecution in the betting scandal over the date of the general election, Sky News can reveal.

A source has told Sky News: “The Gambling Commission is looking to prosecute at least three suspects, but possibly up to five. This includes a politician and a close protection guard.”

It is understood that the commission is not yet at the point of making an announcement and a spokesperson said the commission would not comment on an ongoing investigation.

“We clearly appreciate the level of public interest there is in this ongoing investigation,” a commission spokesperson told Sky News.

“But to protect the integrity of the investigation and to ensure a fair and just outcome, we are unable to comment further at this time, including the name of any person who may be under suspicion, or the total number of suspects.

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The investigation is into whether people placed bets on a 4 July election as a result of inside knowledge in the days leading up to the then prime minister Rishi Sunak’s shock announcement of an early poll on 22 May.

The election date betting scandal began in June when Craig Williams, formerly MP for Montgomeryshire and Mr Sunak’s parliamentary private secretary, admitted he was being investigated by the Gambling Commission.

Mr Williams had placed a £100 bet on a July election at Ladbrokes in his constituency just days before Mr Sunak’s announcement. Based on odds at the time, he would have won £500.

“I put a flutter on the general election some weeks ago,” he said in a post on X on 13 June. “This has resulted in some routine inquiries and I confirm I will fully co-operate with these.”

Next, just a week before polling day, Sky News revealed that Mr Sunak’s Downing Street chief of staff Liam Booth-Smith was being questioned by the commission, the statutory body that regulates betting in the UK, as a witness, not a suspect.

And during the Conservative Party Conference eight weeks ago, Sky News revealed that former deputy prime minister Sir Oliver Dowden had become the most senior ally of Mr Sunak to be interviewed in the official investigation.

Both Mr Booth-Smith and Sir Oliver were questioned as witnesses.

In late August, the Metropolitan Police announced that their detectives had concluded their role in the ongoing criminal investigation, though the Gambling Commission’s investigation continued.

The commission’s investigation is into whether bets placed were in breach of Section 42 of the Gambling Act 2005 (Cheating). The Met had been looking into whether other offences, most likely Misconduct in Public Office, could apply.

The Met said that based on the assessment of the evidence and the advice from the Crown Prosecution Service, it was determined that the high bar for Misconduct in Public Office to be proven was not met.

Making the announcement, Detective Superintendent Katherine Goodwin said: “These allegations caused a significant dent in public confidence during the election campaign and it was right that they were investigated to explore all possible offences.

“While our involvement in the criminal investigation now ceases, it’s important that is not misinterpreted as an all clear for those whose cases were looked at.

“There are still Gambling Act offences to consider and it is appropriate that they are taken forward by investigators from the Gambling Commission who have particular expertise in this field.

“Seven police officers who are alleged to have placed bets are still among those being investigated by the Gambling Commission. They also remain under investigation by the Met’s Directorate of Professional Standards.”

On the day of the Met’s announcement, 23 August, Andrew Rhodes, chief executive of the Gambling Commission, said: “We have remained focused on our criminal investigation into confidential information being used to gain an unfair advantage when betting on the date of the general election.

“Our investigation continues to progress and we have interviewed several suspects under caution. We are continuing to interview a number of witnesses, who are co-operating with this criminal investigation, as well as gathering further documentary and electronic evidence.”

On Monday, 17 June an officer attached to the Royalty and Specialist Protection Command, was arrested on suspicion of Misconduct in Public Office and later bailed.

No further action is being taken against him in relation to that specific offence.

Politics

Bitcoin Suisse eyes UAE expansion with regulatory nod in Abu Dhabi

Published

4 hours ago

May 21, 2025

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Bitcoin Suisse eyes UAE expansion with regulatory nod in Abu Dhabi

Bitcoin Suisse secured an in-principle approval (IPA) from the Financial Services Regulatory Authority (FSRA) of the Abu Dhabi Global Market (ADGM), marking a major step in the Swiss crypto firm’s expansion beyond the European Union.

The Swiss crypto financial service provider received the in-principle approval through its subsidiary BTCS (Middle East), according to a May 21 news release.

The IPA is a precursor to a full financial services license, which would allow Bitcoin Suisse to provide regulated crypto financial services such as digital asset trading, crypto securities and derivatives offerings, as well as custody solutions.

The approval reflects the firm’s “strong commitment to maintaining the highest standards of transparency, security, and regulatory compliance,” according to Ceyda Majcen, head of global expansion and designated senior executive officer of BTCS (Middle East).

“Abu Dhabi, one of the Middle East’s fastest-growing financial centers, presents a compelling opportunity for growth. We look forward to working closely with the FSRA to obtain our full license,” Majcen wrote in a May 21 X announcement.

This marks Bitcoin Suisse’s first expansion outside of the European Union.

Founded in 2013, Bitcoin Suisse played a significant role in developing the country’s crypto ecosystem and has been a key contributor to Switzerland’s Crypto Valley, a Switzerland-based blockchain ecosystem valued at more than $500 billion.

Crypto firms bet on Middle East as next global crypto hub

Increasingly more crypto firms are expanding into the Middle East, seeing the region as the next potential global crypto hub due to its business-friendly regulatory licensing environment.

On April 29, Circle, the issuer of the world’s second-largest stablecoin, USDC (USDC), received an in-principle approval from the FSRA, moving one step closer to the full license to become a regulated money service provider in the United Arab Emirates.

A day earlier, the Stacks Asia DLT Foundation partnered with ADGM, becoming the first Bitcoin-based organization to establish an official presence in the Middle East, Cointelegraph reported on April 28.

As part of the partnership, the Stacks Foundation aims to advance progressive regulatory frameworks in the Middle East.

“We’re not just focused locally — our team is engaged in global conversations, advocating for frameworks that balance decentralization, security, innovation, and compliance surrounding the unlocking of Bitcoin capital,” Kyle Ellicott, executive director at Stacks Asia DLT Foundation, told Cointelegraph.

The foundation is also developing the Bitcoin Capital Activation Framework, described as a comprehensive policy blueprint to help regulators enable Bitcoin utility in their jurisdictions.

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Crypto.com secures EU license to launch crypto financial derivatives

Published

5 hours ago

May 21, 2025

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Crypto.com secures EU license to launch crypto financial derivatives

Mobile-first crypto exchange and payment platform Crypto.com secured a license allowing it to offer cryptocurrency financial derivatives in the European Economic Area.

According to a May 21 announcement, Crypto.com secured a Markets in Financial Instruments Directive (MiFID) license.

“We have already expanded our brand presence in Europe since receiving our MiCA licence and we now look forward to providing customers across the region even more ways to engage with our platform through these new offerings,” said Crypto.com’s co-founder and CEO, Kris Marszalek.

The announcement followed Crypto.com receiving in-principle approval to operate across the European Union under a Markets in Crypto-Assets (MiCA) license in mid-January. The company received regulatory approval for its acquisition of Cyprus-based trading services firm A.N. Allnew Investments from the Cyprus Securities and Exchange Commission (CySEC).

Crypto.com did not immediately respond to Cointelegraph’s request for comment.

A popular strategy

The company is not the first crypto entity to obtain a MiFID license by acquiring a Cyprus-based financial firm. On May 20, cryptocurrency exchange Kraken announced the launch of regulated derivatives trading on its platform under the European Union’s Markets in Financial Instruments Directive (MiFID II).

Like Crypto.com, a Cyprus-based entity played a role in the strategy, with Kraken relying on MiFID II-regulated entity Payward Europe Digital Solutions to offer its derivatives. The launch followed Kraken completing its acquisition of the futures trading platform NinjaTrader earlier in May as its first-quarter revenue jumped 19% year-on-year to $471.7 million.

Crypto derivatives are all the rage

Recently, Coinbase CEO Brian Armstrong said his firm will continue to look for merger and acquisition opportunities, after acquiring crypto derivatives platform Deribit. The comments came after the publicly listed US crypto exchange earlier this month agreed to acquire Deribit, one of the world’s biggest crypto derivatives trading platforms.

Major crypto exchange Gemini has also recently received regulatory approval to expand crypto derivatives trading across Europe. Lastly, decentralized finance platform Synthetix will also venture further into crypto derivatives with plans to re-acquire the crypto options platform Derive.

Crypto.com has made its fair share of acquisitions. Those include Fintek Securities, Charterprime, Orion Principals and SEC-registered broker-dealer Watchdog Capital.

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SEC’s Peirce says NFT royalties do not make tokens securities

Published

5 hours ago

May 21, 2025

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SEC’s Peirce says NFT royalties do not make tokens securities

United States Securities and Exchange Commission (SEC) Commissioner Hester Peirce said many non-fungible tokens (NFTs), including those with mechanisms to pay creator royalties, likely fall outside the purview of federal securities laws.

In a recent speech, Peirce said NFTs that allow artists to earn resale revenue do not automatically qualify as securities. Unlike stocks, NFTs are programmable assets that distribute proceeds to developers or artists. The SEC official said that mirrors how streaming platforms compensate musicians and filmmakers.

“Just as streaming platforms pay royalties to the creator of a song or video each time a user plays it, an NFT can enable artists to benefit from the appreciation in the value of their work after its initial sale,” Peirce said.

Peirce added that the feature does not provide NFT owners any rights or interest in any business enterprise or profits “traditionally associated with securities.”

SEC never prohibited NFT royalties

Oscar Franklin Tan, chief legal officer of Enjin core contributor Atlas Development Services, told Cointelegraph that the recent remarks by Peirce on NFTs and creator royalties have been widely misunderstood.

Peirce had clarified that NFTs that send resale royalties to artists are not necessarily securities, a view Tan says is legally sound but mischaracterized in some media reports.

“So Hester Peirce said that an NFT that sends royalties back to the creator after a sale is not a security. This is correct, but the way some media reported this is completely out of context,” Tan told Cointelegraph. “The actual context is that this is not controversial, and it was never considered a security.”

The lawyer said US securities law focuses on regulating investments and not compensating creators for their work.

“The artist or creator is not an investor, not a passive third party in the NFT,” he said, noting that royalty payments are not considered investment income.

Instead, Tan told Cointelegraph that this type of earning is “analogous to business income,” which the SEC does not regulate. He added:

“The SEC never prohibited contracts where artists and creators get royalties from secondary sales of their work, not royalties from paper contracts or blockchain protocols.”

Tan explained that the legal distinction becomes more complicated when NFTs promise shared profits from royalties to multiple holders beyond the original creator.

Tan also urged regulators and market participants to apply traditional legal reasoning to new blockchain technologies. “Ask yourself, if this were done by pen and paper instead of blockchain, would there still be a regulatory issue?” he said. “If none, slow down.”

OpenSea calls on the SEC to exempt NFT marketplaces from oversight

While NFT royalties may not have been a controversial SEC issue, NFT marketplaces are a different case. In August 2024, NFT trading platform OpenSea received a Wells notice from the SEC, alleging that NFTs traded on the marketplace could qualify as unregistered securities.

On Feb. 22, OpenSea CEO Devin Finzer announced that the SEC has officially closed its investigation into the platform. The executive said that this was a win for the industry.

Following the conclusion of the SEC’s investigation, OpenSea’s lawyers penned a letter to Peirce, who leads the SEC’s Crypto Task Force. OpenSea general counsel Adele Faure and deputy general counsel Laura Brookover said in an April 9 letter that NFT marketplaces don’t qualify as brokers under US securities laws.

The lawyers said the marketplaces don’t execute transactions or act as intermediaries. The lawyers urged the SEC to “clearly state that NFT marketplaces like OpenSea do not qualify as exchanges under federal securities laws.”

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