Copper has withdrawn its application to register in the UK.
The crypto custody firm first failed to register in 2022 amid changes around crypto asset firms by the UK’s Financial Conduct Authority.
Copper Technologies Ltd., a crypto custody firm based in the United Kingdom, has dropped its plans for registration with the country’s Financial Conduct Authority (FCA).
In a report on Friday, Bloomberg said the London-based firm, whose chair is the former UK Chancellor of the Exchequer Philip Hammond, has instead elected for an overseas footprint. Copper’s pivot comes as the company looks to build its business with new hubs across the globe, with new CEO Amar Kuchinad spearheading the growth strategy.
Founded in 2018, Copper has grown to become one of UK’s largest crypto-focused businesses.
Part of the growth has come since the company failed to secure registration with the FCA in 2022. In the last few years, Copper has secured licenses or regulatory approvals in Switzerland, Hong Kong, and Abu Dhabi in the United Arab Emirates.
The crypto custodian has also disclosed plans to expand its services into the United States, a decision hinged on the pro-crypto environment expected under President Donald Trump.
Firms failed to meet regulatory standards
Copper drops its FCA license application amid the UK regulator’s report that most of the applications for licensing by crypto firms did not meet set regulatory standards. In its report in September, the financial markets regulator pointed out that this assessment affected about 90% of firms that applied.
The FCA rejected or saw about 87% of applicants withdraw over failures related to money laundering controls. The UK regulator has licensed only four crypto firms in the past year, with 9 rejected and 15 withdrawn. According to the FCA, 44 crypto firms had secured money laundering registration as of its annual report.
“We recognise the importance of providing an effective and efficient authorisations service if we want the UK to be the best place in the world for financial services to thrive. We continue to play a leading role internationally by shaping the global standards on crypto, sustainability, and non-bank finance to name but a few,” Nikhil Rathi, chief executive officer of the FCA, commented.
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