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Foreign Office data has been compromised by hackers, a minister has confirmed to Sky News, but he said the government is “fairly confident” that no individual data has been accessed.

Trade minister Sir Chris Bryant told Sky’s Mornings with Jones and Melbourne that the government first became aware of the hack in October, and was now “on top of it”.

Sky News understands that the data stolen was on systems operated on the Home Office’s behalf by the Foreign Office, which detected the breach.

The Sun reported last night that a Chinese groups of hackers known as Storm 1949 targeted Foreign Office servers and had accessed information relating to visa details, with “thousands” of confidential documents and data stolen.

But the minister told Sky News that it is “not entirely clear” who is responsible for the hack, and he could share “remarkably little detail”.

The Conservatives are accusing ministers of failing to protect the UK from Chinese interference.

Sir Chris said: “There certainly has been a hack at the FCDO [Foreign, Commonwealth, and Development Office], and we’ve been aware of that since October.”

More on Foreign And Commonwealth Office

Pointing to high-profile hacks this year of Marks and Spencer, Jaguar Land Rover, and the British Library, the minister added: “All of these are really important things for us to tackle and be aware of and prevent wherever possible.

“Some of the reporting has, I think, been a bit more speculation than accurate.”

He said he could share “remarkably little” in the way of facts about the hack because “quite often the investigation takes quite a long time”.

“We managed to close the hole, as it were, very quickly,” Sir Chris said.

“It was a technical issue in one of our sites, I gather. And we’re fairly confident that there’s a low risk of any individual actually being affected by this.

“I know that some of the reports have said, potentially, various things could happen. I think that that’s a bit more speculation than is helpful. So I don’t want to scaremonger about this. We are on top of it.

“And also it’s not entirely clear where this has come from. I know everybody’s speculating about that as well. That is not entirely clear either.”

Conservative shadow foreign secretary Dame Priti Patel shared a report that said the hack was Chinese and wrote on X: “China undermines our security, institutions and democracy but Labour is failing to protect Britain from China’s foreign interference in our country.

“[Sir Keir] Starmer kowtows to China at every opportunity and cannot be trusted to protect our national interest.”

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US lawmakers propose tax break for small stablecoin payments, staking rewards

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US lawmakers propose tax break for small stablecoin payments, staking rewards

US lawmakers have introduced a discussion draft that would ease the tax burden on everyday crypto users by exempting small stablecoin transactions from capital gains taxes and offering a new deferral option for staking and mining rewards.

The proposal, introduced by Representatives Max Miller of Ohio and Steven Horsford of Nevada, seeks to amend the Internal Revenue Code to reflect the growing use of digital assets in payments. The draft is set “to eliminate low-value gain recognition arising from routine consumer payment use of regulated payment stablecoins,” per the draft.

Under the draft, users would not be required to recognize gains or losses on stablecoin transactions of up to $200, provided the asset is issued by a permitted issuer under the GENIUS Act, pegged to the US dollar and maintains a tight trading range around $1.

The bill includes safeguards to prevent abuse. The exemption would not apply if a stablecoin trades outside a narrow price band, and brokers or dealers would be excluded from the benefit. Treasury would also retain authority to issue anti-abuse rules and reporting requirements.

Draft bill explains the reasoning behind tax breaks. Source: House

Related: Crypto Biz: Bank stablecoins get a rulebook; Bitcoin gets a land grab

US bill defers taxes on crypto staking rewards

Beyond payments, the proposal addresses long-standing concerns around “phantom income” from staking and mining. Taxpayers would be allowed to elect to defer income recognition on staking or mining rewards for up to five years, rather than being taxed immediately upon receipt.

“This provision is intended to reflect a necessary compromise between immediate taxation upon dominion & control and full deferral until disposition,” the draft said.

The draft also extends existing securities lending tax treatment to certain digital asset lending arrangements, applies wash sale rules to actively traded crypto assets, and allows traders and dealers to elect mark-to-market accounting for digital assets.

Related: Galaxy predicts stablecoins will overtake ACH transaction volume in 2026

Crypto groups urge Senate to rethink stablecoin rewards ban

Last week, the Blockchain Association sent a letter to the US Senate Banking Committee, signed by more than 125 crypto companies and industry groups, opposing efforts to extend restrictions on stablecoin rewards to third-party platforms.