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FTX founder Bankman-Fried objects to tighter bail, says prosecutors ‘sandbagged’ him

NEW YORK, Jan 28 (Reuters) – Lawyers for Sam Bankman-Fried on Saturday urged a U.S. judge not to ban the indicted FTX cryptocurrency executive from communicating with former colleagues as part of his bail, saying prosecutors “sandbagged” the process to put their client in the “worst possible light.”

The lawyers were responding to a Friday night request by federal prosecutors that Bankman-Fried not be allowed to talk with most employees of FTX or his Alameda Research hedge fund without lawyers present, or use the encrypted messaging apps Signal or Slack and potentially delete messages automatically.

Bankman-Fried, 30, has been free on $250 million bond since pleading not guilty to charges of fraud in the looting of billions of dollars from the now-bankrupt FTX.

Prosecutors said their request was in response to Bankman-Fried’s recent effort to contact a potential witness against him, the general counsel of an FTX affiliate, and was needed to prevent witness tampering and other obstruction of justice.

But in a letter to U.S. District Judge Lewis Kaplan in Manhattan, Bankman-Fried’s lawyers said prosecutors sprung the “overbroad” bail conditions without revealing that both sides had been discussing bail over the last week.

“Rather than wait for any response from the defense, the government sandbagged the process, filing this letter at 6:00 p.m. on Friday evening,” Bankman-Fried’s lawyers wrote. “The government apparently believes that a one-sided presentation – spun to put our client in the worst possible light – is the best way to get the outcome it seeks.”

Bankman-Fried’s lawyers also said their client’s efforts to contact the general counsel and John Ray, installed as FTX’s chief executive during the bankruptcy, were attempts to offer “assistance” and not to interfere.

A spokesman for U.S. Attorney Damian Williams in Manhattan declined to comment.

Bankman-Fried’s lawyers proposed that their client have access to some colleagues, including his therapist, but not be allowed to talk with Caroline Ellison and Zixiao “Gary” Wang, who have pleaded guilty and are cooperating with prosecutors.

They said a Signal ban isn’t necessary because Bankman-Fried is not using the auto-delete feature, and concern he might is “unfounded.”

The lawyers also asked to remove a bail condition preventing Bankman-Fried from accessing FTX, Alameda or cryptocurrency assets, saying there was “no evidence” he was responsible for earlier alleged unauthorized transactions.

In an order on Saturday, Kaplan gave prosecutors until Monday to address Bankman-Fried’s concerns.

“The court expects all counsel to abstain from pejorative characterizations of the actions and motives of their adversaries,” the judge added.

Reporting by Jonathan Stempel in New York; Editing by Andrea Ricci

Our Standards: The Thomson Reuters Trust Principles.

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SEC Commissioner Expects Tighter Stablecoin Regulation — Yellen Says Stablecoins Not Real Threat to Financial Stability – Regulation Bitcoin News

A commissioner with the U.S. Securities and Exchange Commission (SEC) expects to see stricter regulation on stablecoins. However, Treasury Secretary Janet Yellen says stablecoins are currently “not a real threat” to the country’s financial stability.

SEC Commissioner on Stablecoin Regulation

The regulation of stablecoins has been a hot topic this week following the Terra fiasco which saw UST losing its U.S. dollar peg and LUNA plunging to near zero.

A commissioner with the U.S. Securities and Exchange Commission (SEC), Hester Peirce, talked about cryptocurrency regulation Thursday during an event hosted by the London-based Official Monetary and Financial Institutions Forum policy think tank.

Peirce, who is known in the crypto community as “crypto mom,” indicated that tighter regulations on cryptocurrency, particularly stablecoins, could be coming soon. She was quoted as saying:

One place we might see some movement is around stablecoins … That’s an area that has obviously this week gotten a lot of attention.

Lawmakers to Work With Treasury Department on Stablecoin Regulation

U.S. lawmakers have emphasized the urgent need for stablecoin regulation. In her testimony before the Senate Committee on Banking, Housing, and Urban Affairs this week, Treasury Secretary Janet Yellen stressed that it is important and urgent for Congress to pass legislation governing payment stablecoins.

Yellen also testified before the House Financial Services Committee this week, stating that for stablecoins:

I wouldn’t characterize it at this scale as a real threat to financial stability, but they’re growing very rapidly and they present the same kind of risks that we have known for centuries in connection with bank runs.

Both the Financial Stability Oversight Council (FSOC) and the Federal Reserve Board have warned about the risks of stablecoin runs that threaten the country’s financial stability.

Do you think stablecoins should be regulated urgently? Let us know in the comments section below.

Kevin Helms

A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.



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France’s presidential election race is tighter than expected. Here’s what you need to know

An incumbent president standing for election for only the second time in his life; a candidate twice convicted of inciting racist and religious hatred polling in second place; another hard-right stalwart in third and the long-dominant left of French politics in disarray.

Then Russia invaded Ukraine.

With Europe’s eyes fixed firmly on Russian President Vladimir Putin’s bloody war, priorities have quickly shifted: Ammunition stockpiles, high stakes diplomacy and even the threat of a nuclear strike have all entered the national debate.

Campaigning has been disrupted by the crisis, and several key candidates have had to backtrack on their past support for Putin.

Burnished by his experience on the world stage, most polling suggests that incumbent President Emmanuel Macron is likely to come out on top.
But with just days to go before the election, his closest rival Marine Le Pen is rising in the polls, suggesting the vote could be more tightly fought than the last time the pair went head-to-head in 2017.

France hasn’t reelected a sitting president for 20 years, diplomacy has trumped campaigning in the president’s agenda and with the conflict fueling a cost of living crisis, French voters aren’t facing the election many expected.

Here’s what you need to know.

When is the election, and how does it work?

To elect their new president, French voters will likely head to the polls twice.

The first vote, on Sunday April 10, sets 12 candidates against each other. These candidates qualified for the race by securing endorsements from 500 mayors and/or local councilors from across the country.

If no candidate wins 50% of votes in the first round, the two contenders with the most votes will proceed to a run-off two weeks later, on Sunday April 24.

Of the 12 candidates in the race, IFOP polling suggests that only five have ever garnered more than 10% of voters’ support. A second round of voting is almost guaranteed.

This also isn’t the only national vote France faces this year — parliamentary elections will take place in June.

Who’s in the race?

The incumbent

First-term President Emmanuel Macron has only ever stood in one election — his successful 2017 presidential run — and has had a mixed record coming into 2022. Considering that no sitting French president has won re-election since Jacques Chirac in 2002, his is a tough spot to be in, though he is the favorite.

An ex-investment banker and alumnus of some of France’s most elite schools, Macron stirred up nationwide anger with a diesel tax early in his presidency, setting off the yellow vests movement — one of the most prolonged protests the country has seen for decades.

“The popularity rating today is important,” political commentator Jean-Michel Aphatie told CNN. “The level of hatred towards Emmanuel Macron is considerable and shared.”

Internationally, his attempts to win over Donald Trump, prevent the AUKUS submarine deal and his unsuccessful diplomatic efforts to avert war in Ukraine were arguably failures. But Macron’s full-throated backing of an ambitious and autonomous European Union has won him respect abroad and established his geopolitical credentials at home.
The most unexpected challenge of his presidency — Covid-19 — has perhaps defined his time in office. More than two years of lockdowns and mask mandates, a fumbled EU vaccine rollout and the bold move to effectively force French people to get vaccinated have fired up vocal opposition, even as most of the country learned to live with the realities of the virus and a quiet majority supported the measures.

Macron has refused to debate his opponents and has hardly campaigned himself. While his pole position in the race has never really been under threat, experts believe his strategy has been to avoid the political mudslinging as long as possible in order to brandish his image as the most presidential of all the candidates.

But a week out from the first vote, Macron urged his supporters to guard against complacency. “Anything is possible,” he told them, warning of the possibility of a Brexit-style upset in the election.

The challenger

“French electoral logic means that in the second round, you have to be the least hated of the two remaining candidates,” Etienne Girard, editor of L’Express magazine, told CNN.

While France’s first round sees ballots cast across the political spectrum, in the second round many vote to keep a candidate out of office as much as to elect their opponent.

That’s been a problem for Marine Le Pen, who has been synonymous with the French far-right for much of the past decade.
Now an MP in the Calais region — the gateway to the UK that has struggled to deal with migrants heading to Britain — the anti-immigrant Le Pen faced off against Macron in 2017, but lost by a sizeable margin.

Her father, fellow far-right firebrand Jean-Marie Le Pen, also lost in the second round — in his case to Chirac in 2002.

Marine Le Pen’s strategy for this election was originally one of winning mainstream support — “a strategy of respectability,” as Girard describes it.

While still strongly anti-immigrant, the softening of her tone around flagship topics like Islam and euroskepticism — especially since Brexit — has been widely touted as an effort to win over voters outside her far-right base. Even so, “stopping uncontrolled immigration” and “eradicating Islamist ideologies” are her manifesto’s top two priorities.

A fan of Vladimir Putin — a photo of her visiting the Russian president featured on a since-scrapped campaign leaflet — the war in Ukraine has brought up uncomfortable questions for Le Pen.

But in the campaign’s final weeks, she’s put the cost of living front and center of her platform, promising measures that she claims will put “150 to 200 euros” back in the pockets of each household, including a pledge to lift sales tax on 100 household goods.

Le Pen is known for capturing hard-to-reach voters, according to pollster Emmanuel Riviere. “She always manages to seduce people who are not interested in politics at all, precisely because she offers them a solution to express their anger towards politics,” he told CNN.

Le Pen is currently polling far higher than she did at the 2017 election. Days out from the first round, IFOP polling suggests she may win 47% of votes in a second round runoff against Macron.

New extremes

The new kid on the block, far-right TV pundit and author Eric Zemmour had long been touted as a possible presidential contender. Known for his uncompromising stances on Islam, children with non-French names and immigration, he has twice been convicted for inciting racial or religious hatred.

As a presidential candidate, he has doubled down on his race-driven rhetoric, touting the racist “Great Replacement” conspiracy theory in his speeches and promising a “ministry for re-immigration” to deport as many as 1 million people of North African descent from France. The theory contends that immigrants want to “replace” the native-born French population.

Zemmour enjoyed a seat among the top three candidates until March, according to IFOP polling, challenging the Le Pen family’s dominance of the political far-right.

He openly cites Islam as a danger menacing France and has attracted a more educated and affluent demographic to the political extreme, according to Riviere. Well-read and a talented orator, his appeal to “save our homeland, our civilization, our culture” has struck a chord with some.

“People, when they sit in front of their TVs and listen to him, they feel like they’re being elevated. And that, in France, is something that is expected enormously from a political leader,” said Girard, who has also written a biography of Zemmour.

Ultimately, though, he is treading on the toes of Le Pen.

“They are really in direct competition with each other because their confrontation can make them lose big to one or the other,” Riviere said.

Zemmour — who in 2018 proudly confessed to “dreaming” of a French Putin — has seen his popularity wane since the war in Ukraine began.

Zemmour was publicly convinced that Putin would never invade, then continued to defend him even after he did. Zemmour has since condemned the invasion — something of a U-turn in his support for the Russian president.

Outside chances

In Jean-Luc Melenchon, the French far-left has its firebrand politician too. The leader of the “France Unbowed” party, veteran activist and politician Melenchon has stood in three presidential contests so far.

Among his flagship policies are a “fiscal revolution,” a radical rethinking of French governance towards more direct involvement of the electorate and a 1 billion-euro plan to combat violence against women — a hot-button issue in France.

But devoid of a unifying candidate, the French left seems to have little chance of challenging for a second-round place. Melenchon has a loyal base among voters from the far-left but he’s struggled to win over more centrist voters.

Both Anne Hidalgo, Mayor of Paris and the left-wing Socialist Party’s presidential candidate, and Valerie Pecresse, of the right-wing Republicans party, have struggled to make headway in the polls — a damning indictment of the French political mainstream. Their parties suffered from the creation of Macron’s centrist “La Republique En Marche” party in 2016, and have yet to recover.

But while Macron may be in the lead as French voters prepare to go to the polls, April may yet have surprises in store.

“In this country, anything is possible. We’ve seen the impossible come true in other countries,” political commentator Aphatie said. “Donald Trump elected? Never.”

What do the polls say?

Incumbent Macron is out in front, according to polling from IFOP, which suggests his levels of support haven’t dropped below 24% since January, and rose to a high of 31% in the first weeks of the war in Ukraine.

Similarly, Marine Le Pen has held on to second place for almost all of the past three months — hitting a high of 21% at the end of March — according to IFOP.

All of which would seem to set up a rerun of the 2017 second round. But while Macron walked away with almost two-thirds of the votes last time around, IFOP polling suggests that this year a Macron-Le Pen faceoff could result in the incumbent taking 53% of the vote to 47% for Le Pen, a much less comfortable margin of victory for Macron.

What are the biggest issues for French voters?

The cost of living is among the top issues for the French electorate this year. Faced with the economic fallout of the pandemic, high energy prices and the war in Ukraine, voters are feeling the pinch, despite generous government support.

While financial pressures may not be enough to whitewash some candidates’ extremism in voters’ minds, they may push some to look for unorthodox answers to their problems.

The fighting in Ukraine is a long way from the bistros and cafes of France, but the conflict is certainly on voters’ minds. Just shy of 90% of French people were worried about the war in the last week of March, according to IFOP. Given the challengers’ patchy record on standing up to Putin, this is likely to play in Macron’s favor.

Notably absent from the debate has been the environmental crisis. Although the importance of climate protections is gaining traction globally, France sourced 75% of its electricity needs in 2020 from nuclear energy, according to the French environment ministry. With most candidates backing the kind of nuclear development that Macron has already announced, there is little divergence on this issue.

For all the fanfare that this election once promised, with a war on the European Union’s border and many voters struggling to pay their bills, France’s choice may now rest more on the next five months than the next five years.

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E.P.A. Plans Tighter Tailpipe Rules for Trucks, Vans and Buses

But in order to put the United States on a path toward a transition to all-electric trucks, the forthcoming truck rules would have to be far more stringent, experts said. Transportation is the largest single source of greenhouse gases generated by the United States, representing 29 percent of the nation’s total emissions.

“It’s great to see that the rule is driving 90 percent reduction in air pollution in heavy-duty vehicles and at the same time opening the door to reducing greenhouse gas pollution,” said Drew Kodjak, executive director of the International Council on Clean Transportation, a research organization. “But we’ve got this thing called climate change and we’ve really got to start driving electrification in the heavy-duty truck sector. My big concern is that the proposal as it is written will not do that.”

Advocates for warehouse workers, many of whom are exposed to pollution from truck exhaust, said they would like regulations that replace diesel-fueled trucks with electric or zero-emissions vehicles.

“Cutting emissions anywhere is good,” said Yana Kalmyka, an organizer with Warehouse Workers for Justice. “But if you’re thinking about a community that has tens of thousands of trucks a day passing through it, electrification is the only just solution. The rule is not addressing other industrial truck pollutants such as soot, and we know that Black and brown communities are facing cumulative burdens from these pollutants.”

“Warehouse workers are breathing in all this air — this is a workplace issue and an environmental racism issue,” she added.

The E.P.A. has said it intends to create another set of greenhouse gas rules for trucks, beginning as soon as model year 2030, that will be “significantly stronger” than the current standards, and designed to speed the transition to all-electric trucks.

“Waiting for another few years to do the next set of greenhouse gas standards for trucks is wrong. We just don’t have time,” said Margo Oge, an expert on electric vehicles who headed the E.P.A.’s Office of Transportation and Air Quality from 1994 to 2012. “My hope is that they will use this time to strengthen the standard now.”

The rule announced Monday will be open for public comment for 46 days, and the E.P.A. is expected to finalize it by the end of 2022.

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Russian rouble plunges 28% after US and allies impose tighter sanctions

Russia’s currency tumbled more than 28 per cent to a record low in early trading on Monday, as a new round of western sanctions heaped pressure on the country’s financial system in response to its invasion of Ukraine.

The rouble dropped to almost 118 against the US dollar, according to Bloomberg data, following a weekend when Russian president Vladimir Putin put his nuclear forces on high alert and the US and Europe unleashed their toughest sanctions in a bid to cut the country off from the global financial system.

In an attempt to stem the market fallout, Russia’s central bank banned foreign selling of Russian securities on Monday. No information was provided on when the ban would be lifted.

The central bank also said trading on Russia’s stock markets would not open for the morning session and that it would announce later today if equity trading would resume. The country’s benchmark Moex index has fallen by more than a quarter over the past week.

The market moves came as Ukraine’s military said on Monday it had repelled another night of attacks on Kyiv, with columns of Russian troops repeatedly attempting to storm the capital.

Ukraine’s military also said that enemy troops continued to attack airports, air defence systems, critical infrastructure and residential areas around the country. 

Russian and Ukrainian military claims cannot be independently verified.

In an early sign of how Moscow is being pushed further to the fringes of world markets, Norway said on Sunday that its $1.3tn oil fund, the world’s biggest sovereign wealth fund, would freeze its investments in Russian assets and begin divesting from the country. BP, the UK energy group, also said it would divest its 20 per cent stake in Russian state-owned oil company Rosneft it has held since 2013.

The rouble had already been hit hard in the previous week, sliding to record lows following the invasion and the imposition of sanctions by the US and Europe.

The US and its allies ratcheted up those punitive measures on Saturday, taking aim at Russia’s central bank to prevent it from using international reserves. Western allies also agreed to cut some of the country’s lenders out of the Swift messaging system, a crucial piece of infrastructure for global payments.

Russians have been forming long queues to withdraw money out of cash machines, with the central bank lacking an obvious mechanism to stabilise its economy and currency.

The Russian central bank stepped in to shore up the rouble last week by selling foreign currency reserves. But the weekend’s sanctions against the central bank compromise its scope to keep up this support.

“Put simply, Russia’s ability to transact with any financial institution at a global level will be severely impaired, because most international banks across any jurisdiction use Swift,” George Saravelos, an analyst at Deutsche Bank, wrote in a note to clients.

Saravelos added that he expected financial markets to reflect intensifying risks to energy supplies, denting investors’ willingness to buy risky assets and potentially also dragging down the euro.

“Money markets may experience some deterioration in funding conditions this week on the back of the uncertain impact of an asset freeze on global liquidity. It would be expected that the European Central Bank, Fed and other central banks step in to provide a powerful backstop if needed and we would not rule out inter-meeting announcements,” he said, adding that the rouble and other European emerging market currencies are likely to come under pressure.

On Friday, rating agency S&P Global cut Russia’s debt rating to “junk” status, underlining the risk that the military assault on Ukraine could prove even more deeply damaging to the country’s financial markets.

Russia’s central bank sought to calm market nerves on Sunday, saying it would offer unlimited liquidity to banks. “The Russian banking system is stable, and has sufficient capacity of capital and liquidity to function in any situation,” it said.

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China proposes tighter rules but no ban for offshore listings

BEIJING, Dec 24 (Reuters) – China’s securities watchdog on Friday proposed tightening rules governing Chinese companies listing abroad, which it said would improve oversight while allowing them to continue to do so, the latest in a spate of regulatory moves by Beijing in 2021.

The draft rules, which had been keenly awaited by investors and were posted by the China Securities Regulatory Commission on its website, extend the CSRC’s oversight of offshore listings to Chinese firms with variable interest entity (VIE) structures.

There had been much uncertainty among investors and Chinese firms over how much tighter the new rules would be.

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“China is tightening the screws on offshore listings but not turning the valves off completely,” Andrew Collier, managing director of Orient Capital Research, said of the plans.

The CSRC said that the existing rules regulating offshore listings were outdated and the proposed new ones reflect China’s desire to further open up and are “not about policy tightening”.

Previously, the regulator would only examine companies incorporated onshore in China that proposed an offshore listing, such as in Hong Kong.

Beijing has unleashed a flurry of regulatory tightening this year under President Xi Jinping, including clamping down on anti-competitive behavior, banning private tuition groups and reining in a debt binge by property developers in a wide-ranging campaign that has rattled domestic and global markets.

VIEs have mostly been used by companies that list on offshore stock markets, primarily the United States, to skirt Chinese rules restricting foreign investment in sensitive industries such as media and telecommunications.

Most offshore-listed Chinese tech firms, including Alibaba Group Holdings and JD.com Inc , use the structures, which give them more flexibility to raise capital, while also bypassing the scrutiny and lengthy IPO vetting process that locally-incorporated companies have to go through.

“The real key is how much data needs to be retained, location of servers, and whether the U.S. or China has responsibility for accounting,” Collier said.

CSRC said the proposed registration process should take up to 20 working days if adequate materials were submitted.

It will also require international banks that underwrite a Chinese firm’s offshore listing to register with the CSRC.

DIDI IMPACT

Offshore IPOs have provided an alternative source of capital for Chinese companies and a New York listing has been seen as a badge of honor for many.

But Beijing has been ramping up supervision of overseas listings since the $4.4 billion initial public offering (IPO) of ride-hailing giant Didi Global Inc (DIDI.N) and the proposals on Friday were not as stringent as some had expected.

Chinese firms have raised about $12.8 billion in U.S. listings in 2021, according to Refinitiv data, but the deals ground to a halt after Didi’s debut in New York in early July.

The CSRC said Chinese regulators respected the choices made by companies on listing locations and the rules would not be retroactively applied, adding that it would not consider whether firms met the requirements of overseas listing locations.

But the Chinese government can order a company to dispose of its assets or businesses if its offshore listing jeopardizes national security, according to the proposed new rules.

The announcement came as U.S. markets were closed on Friday for the Christmas holiday period.

In a VIE, a Chinese firm sets up an offshore company for an overseas listing that allows foreign investors to buy into it.

The offshore company enters into a series of contracts with the owner of the local Chinese company, which operates the business in China, to obtain 100% economic interest in that business, analysts have said previously.

Chinese IPOs on all world markets have reached a record $100 billion this year, Refinitiv data showed.

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Reporting by Kane Wu, Samuel Shen, Selena Li, Julie Zhu; Beijing Newsroom; Writing by Scott Murdoch and Tom Daly; Editing by Alexander Smith

Our Standards: The Thomson Reuters Trust Principles.

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EXCLUSIVE Mexico considers tighter entry rules for Venezuelans after U.S. requests -sources

A flight information screen displays the arrivals and delayed flights, including the one from London, as the Mexico’s government analyses to suspend flights from the U.K. due to fears about a highly infectious new coronavirus strain amid the coronavirus disease (COVID-19) outbreak, at the Benito Juarez International Airport, in Mexico City, Mexico December 21, 2020. REUTERS/Luis Cortes

SAN FRANCISCO/MEXICO CITY, Nov 12 (Reuters) – Mexico is considering setting tougher entry requirements for Venezuelans, partly in response to U.S. requests, after a sharp rise in border arrests of Venezuelans fleeing their homeland, according to three people familiar with the matter.

Currently, Venezuelans do not need a visa to enter Mexico as tourists. But as apprehensions of Venezuelan migrants on the U.S.-Mexico border soar, Mexico is looking at making their entry subject to certain criteria, a Mexican official familiar with the government’s internal discussions said.

New entry rules could be applied soon, the official said.

A second Mexican government source said Mexico was reviewing its options, and holding discussions with Venezuela to explore alternatives to imposing visa requirements.

A third person familiar with Mexican-U.S. talks said Washington is urging Mexico to impose visa restrictions on Venezuelans, noting that U.S. Customs and Border Protection (CBP) has been complaining about the increase in Venezuelans.

Options under review include making Venezuelans show they are economically solvent and in employment, and have a return plane ticket when they enter in order to ensure they are not using Mexico to enter the United States, the first source said.

A U.S. State Department spokesperson said Washington was working with Mexico to address root causes of irregular migration in a “collaborative, regional approach” when asked by Reuters whether the Biden administration was pressing Mexico to tighten entry requirements for Venezuelans.

“The United States appreciates Mexico’s efforts that contribute to safe, orderly, and humane processes for migrants at and within its borders,” the spokesperson said.

The White House, the U.S. Department of Homeland Security (DHS), and CBP did not immediately respond to a request for comment. Neither Mexico’s foreign ministry nor Venezuela’s Information Ministry replied to a request for comment.

The discussions come as encounters of Venezuelans at the U.S.-Mexico border have leapt to 47,762 in the year through September from just 1,262 during the previous 12-month period, according to U.S. government data.

Total apprehensions of migrants at the U.S.-Mexico border have hit record levels this year. That has put pressure on U.S. President Joe Biden ahead of congressional elections next November, with many voters in Texas border towns upset and Republicans accusing his administration of pursuing an “open border” policy.

One of the Mexican sources said Washington had lobbied Mexico to slow arrivals from Venezuela, but that Mexico also wanted to make sure people were not entering on false pretenses.

A fourth source, in U.S. government, said efforts to lobby Mexico to tighten entry requirements from OPEC member Venezuela had increased since Venezuelan arrivals jumped this summer, and that requests for cooperation had been made informally by diplomats and the DHS. The source said Washington was not leaning hard on Mexico.

Tighter entry rules could seriously affect migration plans of many Venezuelans, who pay smuggling networks to help them escape economic devastation under President Nicolas Maduro, who has presided over a severe financial meltdown amid heavy U.S. sanctions. Many of the Venezuelans depart with little money.

Venezuelans arriving from elsewhere in Latin America like Colombia or Chile, where they often work for a few years to save in hard currency before heading north, would likely be less exposed to requirements centering on their solvency.

Rights activists on Friday decried the potential move to restrict Venezuelan arrivals.

“Venezuelan migrants and refugees are fleeing a complex humanitarian emergency, lack of justice, an absence of freedom, and violence,” said David Smolansky, an exiled Venezuelan opposition leader who coordinates the Organization of American States’ response to Venezuela’s migration crisis. “In the face of such a situation, it is fundamental that they receive protection.”

Reuters reported in October that the Biden administration wanted Mexico to impose visa requirements on Brazilians to complicate their path to the U.S. border. And in September, Mexico suspended visa exemptions for Ecuadorians for six months following a steep increase in that country’s nationals trying to cross the U.S. border.

The U.S. government source said Biden’s aides could raise the Venezuelan migrant issue with Mexican President Andres Manuel Lopez Obrador’s delegation when he visits Washington next week for a U.S.-Mexico-Canada summit.

Reporting by Alexandra Ulmer in San Francisco, Dave Graham in Mexico City and Matt Spetalnick in Washington
Additional reporting by Kristina Cooke in San Francisco, Mica Rosenberg in New York, Vivian Sequera in Caracas and Ana Isabel Martinez in Mexico City
Editing by Rosalba O’Brien

Our Standards: The Thomson Reuters Trust Principles.

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With tighter grip, Beijing sends message to Hong Kong tycoons: fall in line

HONG KONG, Sept 17 (Reuters) – As Beijing seeks to tighten its grip over Hong Kong, it has a new mandate for the city’s powerful property tycoons: pour resources and influence into backing Beijing’s interests, and help solve a potentially destabilising housing shortage.

Chinese officials delivered the message in closed meetings this year amid broader efforts to bring the city to heel under a sweeping national security law and make it more “patriotic,” according to three major developers and a Hong Kong government adviser familiar with the talks.

“The rules of the game have changed,” they were told, according to a source close to mainland officials, who declined to be named because of the sensitivity of the matter. Beijing is no longer willing to tolerate “monopoly behaviour,” the source added.

For Hong Kong’s biggest property firms, that would be a big shift. The companies have long exerted outsized power under the city’s hybrid political system, helping choose its leaders, shaping government policies, and reaping the benefits of a land auction system that kept supply tight and property prices among the world’s highest.

The sprawling businesses of the four major developers, CK Asset (1113.HK), Henderson Land Development (0012.HK), Sun Hung Kai Properties (SHKP) (0016.HK) and New World Development (0017.HK), extend their influence even further into society. For example, the empire of Hong Kong’s richest man, Li Ka-shing of CK Assets, includes property, supermarkets, pharmacies and utilities.

Because the tycoons are so deeply intertwined with the city’s economy and politics, it would be difficult for Beijing to sideline them completely, said CY Leung, former Hong Kong leader and now a vice-chairman of China’s top advisory body.

“They are a major component of our political and economic ecosystem, so we need to be careful,” Leung told Reuters. “I think we need to be judicious with what we do and not throw the baby out with the bathwater.”

INFLECTION POINT

Some Chinese officials and state media have blamed tycoons for failing to prevent anti-government protests in 2019 that they say were rooted in sky-high property prices.

The protests, joined by millions of all ages and social strata, demanded greater democracy and less meddling by Beijing in Hong Kong, which had been promised wide-ranging freedoms until 2047.

The new directives mark an inflection point in the power play between Beijing and the tycoons, who once held kingmaking sway in Hong Kong’s political leadership race.

“Now the focus is on contribution to the country; this is not what the traditional business sector in Hong Kong is used to,” said Raymond Tsoi, chairman of Asia Property Holdings (HK) and a member of the advisory group Chinese People’s Political Consultative Conference Shanxi Committee.

In March, Beijing made sweeping electoral changes. In a new election committee, responsible for choosing the next leader of Hong Kong and some of its lawmakers, a greater “patriotic” force has emerged, while many of the prominent tycoons, including Li, 93, will be absent for the first time since Hong Kong returned to Chinese rule in 1997.

Hong Kong’s Constitutional and Mainland Affairs Bureau said the new election committee would be more broadly representative of Hong Kong, going beyond the vested interests of specific sectors, specific districts and specific groups, which it called “inadequacies” in the system.

The source close to Chinese government officials told Reuters a team in the Hong Kong and Macau Affairs Office and the Liaison Office (HKMAO) had sought to curtail the influence of groups perceived to have done little for Beijing’s interests in the city.

HKMAO and the Liaison Office did not respond to requests for comment.

SHKP said it was confident about the future of Hong Kong and would continue to invest there and in mainland cities. Henderson Land and New World Development declined to comment, while CK Holdings did not respond to request for comment. Li did not respond to a request for comment.

‘GIVE BACK MORE’

Developers have already taken measures to show the message was received.

New World and Henderson Land have donated rural land as reserves for social housing. In recent weeks, Nan Fung Group, Sun Hung Kai, Henderson Land and Wheelock applied for a public-private partnership scheme, the first applications since the programme was launched in May 2020.

The programme offers developers an opportunity to build on a higher percentage of open land, but they must use at least 70% of the extra floor area for public housing. Several told Reuters last year that the programme was unattractive because there were many restrictions and a risk of higher costs.

“Beijing is not telling us what to do, but saying you need to solve this problem,” Hopewell Holdings’ Gordon Wu told Reuters, adding that “it won’t be impatient but it will give you pressure.”

Another developer source, who declined to be named because of the sensitivity of the issue, said Chinese officials had laid out expectations, but no strategy or deadline.

“We can continue our businesses as long as we give back more to society,” said the source, a senior official at a top developer in Hong Kong. The sector needs to step up efforts to ease the housing shortage, he added.

Most of the developers have published statements and newspaper advertisements, along with other Chinese corporations, to support the national security legislation and electoral changes.

Critics of the moves said they crushed democratic dreams, while authorities said they were necessary to restore stability after the 2019 demonstrations.

Adrian Cheng, 41, who took over as chief executive of New World, founded by his grandfather, told Reuters late last year the company needs to become more relevant to society, especially in a new environment where firms have to carefully balance the interests of various parties.

“It’s not easy. I have a lot of grey hair you can’t see,” Cheng said.

(This story corrects to clarify Sun Hung Kai Properties’ corporate name in Paragraph 5

Additional reporting by James Pomfret; Editing by Anne Marie Roantree and Gerry Doyle

Our Standards: The Thomson Reuters Trust Principles.

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