Liberal Democrat leader Sir Ed Davey has challenged his party to “tear down” the Conservatives’ “blue wall” in order to help oust Boris Johnson from Downing Street.
In his keynote address at the Liberal Democrat conference on Sunday, Sir Ed said the Tories would only lose power at the next election if his party took seats off them.
“Make no mistake: the electoral arithmetic is clear,” he said. “These Conservatives can’t be defeated next time unless we Liberal Democrats win Tory seats.”
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Chesham and Amersham: Tories lose seat for first time in 47 years
Sir Ed pointed to his party’s recent victory at June’s by-election in Chesham and Amersham – when they took the constituency from the Conservatives – as showing how “even in deepest, bluest Buckinghamshire the Tories can be beaten”.
“In Chesham and Amersham, we knocked out one blue brick; now it’s up to us to tear it down,” he added.
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In a series of attacks on Mr Johnson and his government, Sir Ed claimed that many in traditionally Conservative-supporting areas “just don’t feel that Boris Johnson represents them, or shares their values”.
“They’re not convinced the prime minister is competent – or worse still, decent,” he added.
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And he said people who had voted Tory all their lives “now feel completely let down” and “betrayed”.
Image: The Lib Dem leader launched a series of attacks on Boris Johnson and his government
Sir Ed said part of the reason for Lib Dem success in Chesham and Amersham was a “groundswell of frustration and discontent from people who feel ignored and taken for granted by this Conservative government”.
He appeared in front of around 150 people in London’s Canary Wharf in his first leader’s speech in front of a live audience, although most of the Lib Dem conference has been held online.
Sir Ed attacked the Tories’ cuts to Universal Credit, the reduction in the UK’s foreign aid budget, Conservative immigration policies and the government’s handling of the Afghanistan crisis.
And he also took aim at new Justice Secretary Dominic Raab, whose Esher and Walton constituency is one of the Lib Dems’ key targets ahead of the next election.
Sir Ed joked that the former foreign secretary – who was widely criticised for being in Greece as Afghanistan fell to the Taliban – only accepted his three new jobs at last week’s cabinet reshuffle “on the basis that three jobs would come with three times the holiday entitlement”.
The Lib Dem leader accused Mr Johnson of “steering us all into another terrible crisis” – after Brexit and COVID-19 – as UK businesses suffer supply issues and labour shortages.
He claimed ministers had “ignored all the warnings” about the government’s Brexit deal and new immigration rules.
And Sir Ed quipped: “To be fair, this is one time Boris Johnson has actually delivered; he said he wanted to ‘f*** business’, and he has well and truly f***** them.”
He called on his party to think back to 1992, when the Tories last won a fourth term in office, to remember how then Lib Dem leader, the late Paddy Ashdown, called for the party to “be the catalyst, the gathering point for a broader movement dedicated to winning the battle of ideas which will give Britain an electable alternative to Conservative government”.
Image: Lib Dems were urged to heed the past call of their former leader Paddy Ashdown
“That was the role of the Liberal Democrats then and it is the role of the Liberal Democrats today,” Sir Ed said.
“Boris Johnson is not a prime Minister worthy of our great United Kingdom. His Conservatives are not a government worthy of the British people.
“This prime minister and these Conservatives have got to go.”
Although the Lib Dems and Labour discussed a coalition of their parties prior to the 1997 general election, Sir Ed has recently said he is “very sceptical” of a possible deal between current opposition parties.
Outlining his “fair deal” offer to British voters ahead of the next election in his speech, Sir Ed outlined commitments on climate change – such as banning new oil, gas and coal companies from the London Stock Exchange – as well as plans to replace business rates with a land tax and a proposal to allow unpaid carers and those they care for to have their own care budget.
In the major policy announcement of his speech, Sir Ed called for the government to match what their own education adviser, Sir Kevan Collins, urged ministers to do and put at least £15bn into a post-pandemic catch-up fund for pupils.
He said schools should be able to spend the cash “as they see best”, while the Lib Dems have proposed that £5bn of the money over a three-year programme should be handed to parents in the form of catch-up vouchers.
“Parents could choose to spend it with their child’s own school – on an after-school homework club, on one-to-one tuition, on special extra-curricular activities from sports to music lessons, provided for that child by their school,” he said.
“Or parents could choose to spend it on tuition they organise. Or with a music teacher they find. Or on therapy and counselling.
“As long as it was supporting the education and well-being of their child, it would be the parents’ choice.”
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Brazil’s central bank completed rules that bring crypto companies under banking-style oversight, classifying stablecoin transactions and certain self-custody wallet transfers as foreign-exchange operations.
Under Resolutions 519, 520 and 521, published Monday, the Banco Central do Brasil (BCB) established operational standards and authorization procedures for what it calls Sociedades Prestadoras de Serviços de Ativos Virtuais (SPSAVs), a new category of licensed virtual-asset service providers operating in the country.
The framework extends existing rules on consumer protection, transparency and Anti-Money Laundering (AML) to crypto brokers, custodians and intermediaries.
The rules will take effect on Feb. 2, 2026, with mandatory reporting for capital-market and cross-border operations set to begin on May 4, 2026.
Stablecoins under foreign exchange rules
Under Resolution 521, a purchase, sale or exchange of fiat-pegged virtual assets, including international transfers or payments using such assets, will be treated as foreign-exchange (FX) operations.
With this classification, stablecoin activity will be subject to the same scrutiny as cross-border remittances or currency trades.
Licensed FX institutions and the new SPSAVs will be able to perform these operations, subject to documentation and value limitations. According to the BCB, transactions with unlicensed foreign counterparts will be capped at $100,000 per transfer.
The rules also cover transfers to and from self-custodied wallets when intermediated by a service provider. This means that providers must identify the wallet’s owner and maintain their processes that verify the origin and destination of the assets, even if the transfer itself isn’t cross-border.
This provision extends AML and transparency obligations to areas previously considered outside the scope of regulated finance.
While the rules don’t explicitly ban self-custody, they close a key reporting gap, forcing regulated exchanges and brokers to treat wallet interactions like formal FX operations.
BCB says the goal is to promote efficiency and legal certainty
In the announcement, the BCB said its goal is to ensure “greater efficiency and legal certainty,” prevent regulatory arbitrage and align crypto activities with the country’s balance-of-payments (BoP) statistics, which means making stablecoin transfers visible in official financial data.
The move follows months of public consultation and growing concern from the central bank on the dominance of stablecoin use in Brazil. On Feb. 7, BCB President Gabriel Galipolo said that around 90% of crypto activity in Brazil involved stablecoins, mainly used for payments.
Galipolo said the widespread use of stablecoins in payments presented regulatory and oversight challenges, particularly in areas such as money laundering and taxation.
Brazil’s central bank said the new framework aims to curb scams and illicit activity while providing legal clarity to crypto markets.
For crypto builders, this may raise compliance costs and reshape how local platforms interact with global liquidity. Smaller crypto players will be forced to compete with bigger institutions and meet more stringent banking-grade standards.
The rules will take effect in February 2026, but market participants are expected to start restructuring before then.
For Brazil, where crypto activity is second only to Argentina in Latin America, the new regulations signal a decisive shift from experimentation to integrated oversight.
The new rules show that crypto is welcome in the Brazilian financial ecosystem, but it will have to play by the same rules as fiat money.
Institutional investors are maintaining confidence in digital assets despite a sharp market correction in October, with most planning to expand their exposure in the months ahead, according to new research.
Over 61% of institutions plan to increase their cryptocurrency investments, while 55% hold a bullish short-term outlook, Swiss crypto banking group Sygnum said in a report released on Tuesday. The survey covered 1,000 institutional investors globally.
Roughly 73% of surveyed institutions are investing in crypto due to expectations of higher future returns, despite the industry still recovering from the record $20 billion market crash at the beginning of October.
However, investor sentiment continues facing uncertainty due to delays in key market catalysts, including the Market Structure bill and the approval of more altcoin exchange-traded funds (ETFs).
While this uncertainty may carry over into 2026, Sygnum’s lead crypto asset ecosystem researcher, Lucas Schweiger, predicts a maturing digital asset market, where institutions seek diversified exposure with long-term growth expectations.
“The story of 2025 is one of measured risk, pending regulatory decisions and powerful demand catalysts against a backdrop of fiscal and geopolitical pressures,” he said, adding:
“But investors are now better informed. Discipline has tempered exuberance, but not conviction, in the market’s long-term growth trajectory.”
Despite October’s correction, “powerful demand catalysts” and institutional participation remained at an all-time high, with the growing ETF applications signaling more institutional demand, added Schweiger.
Crypto staking ETFs may be the next institutional catalyst
Crypto staking ETFs may present the next fundamental catalyst for institutional cryptocurrency demand.
Over 80% of the surveyed institutions expressed interest in crypto ETFs beyond Bitcoin (BTC) and Ether (ETH), while 70% stated that they would start investing or increase their investments if these ETFs offered staking rewards.
Staking means locking your tokens into a proof-of-stake (PoS) blockchain network for a predetermined period to secure the network and earn passive income in exchange.
Meanwhile, investors are now anticipating the end of the government shutdown, which could bring “bulk approvals” for altcoin ETFs from the US Securities and Exchange Commission, catalyzing the “next wave of institutional flows,” according to Sygnum.