Copper Technologies, a cryptocurrency custody firm backed by Barclays, has withdrawn its application for a crypto license in the United Kingdom. This decision comes as the company aims to redirect its efforts towards international markets under new leadership, following a challenging regulatory landscape in the UK.
Key Takeaways
-
Copper Technologies has withdrawn its application for a UK crypto license.
-
The firm is shifting its focus to foreign markets, including Switzerland, Hong Kong, and Abu Dhabi.
-
Nearly 90% of crypto license applications to the UK FCA have failed in 2024.
Background on Copper Technologies
Founded in 2018, Copper Technologies has quickly established itself as a significant player in the cryptocurrency custody space. The firm has garnered substantial investment from Barclays, a major British bank, and is chaired by former UK Chancellor of the Exchequer, Philip Hammond. However, the company has faced challenges in securing regulatory approval in the UK.
Withdrawal of License Application
On December 20, Copper announced its decision to withdraw its application to register with the UK’s Financial Conduct Authority (FCA). This move is part of a broader strategy to focus on obtaining regulatory approvals in more favorable jurisdictions. The new CEO, Amar Kuchinad, emphasized the need to refine the company’s global growth strategy, which has necessitated this shift in direction.
Regulatory Challenges in the UK
The FCA has reported that nearly 90% of crypto license applications have failed as of September 2024. The regulator's annual report highlighted that over 87% of applications were either withdrawn, rejected, or refused due to inadequate money laundering controls. In the past year, only four out of 35 applications for cryptocurrency firm registration were approved, with many submissions lacking essential components for assessment.
Future Focus on International Markets
In light of the regulatory hurdles in the UK, Copper is now prioritizing its expansion into international markets. The company is actively seeking licenses and regulatory approvals in:
-
Switzerland
-
Hong Kong
-
Abu Dhabi
This strategic pivot aims to strengthen Copper’s presence in the United States and enhance its growth in Asia and the Middle East. Kuchinad's leadership is expected to drive this international focus, as he aims to position Copper as a leading global player in the cryptocurrency custody sector.
Conclusion
Copper Technologies' withdrawal of its UK crypto license application underscores the ongoing challenges faced by cryptocurrency firms in navigating regulatory landscapes. As the company shifts its focus to international markets, it remains to be seen how this strategy will impact its growth and operations in the rapidly evolving crypto industry.
Sources
-
Barclays-backed Copper withdraws UK crypto license application, Cointelegraph.