According to Bloomberg, Copper Technologies, a leading cryptocurrency custody provider supported by Barclays investment, has withdrawn its application for a crypto license in the United Kingdom.
Copper Withdraws UK Crypto License Application Amid Challenges
The decision follows increased scrutiny from the UK’s Financial Conduct Authority (FCA), which has rejected or refused most crypto applications over the past year.
On December 20, 2024, the firm confirmed that it would now prioritize expanding its presence in other key markets, including the United States, Switzerland, and the Middle East.
Copper’s strategic shift is part of a broader effort to navigate the complex regulatory environment for crypto businesses in the UK.
The FCA’s stringent requirements for securing a crypto license have been a significant challenge for firms operating in the UK.
In its 2024 annual report, the FCA revealed that over 87% of crypto registration applications were withdrawn, rejected, or refused. The regulator cited poor anti-money laundering controls as the primary reason for such high failure rates.
Copper, one of the most prominent players in the UK crypto scene, had already faced difficulties securing permanent registration in 2022.
This led the company to seek regulatory approval in other jurisdictions. With the withdrawal of its UK crypto license application, Copper aims to strengthen operations in global markets with more favorable regulatory frameworks.
The FCA’s actions reflect its cautious stance on cryptocurrency regulation, approving only four of 35 applications in the past year. This has forced many crypto firms, including Copper, to reconsider their operational strategies.
Leadership Transition and Global Expansion
Copper Technologies’ decision comes amid significant leadership changes. In October 2024, the company appointed Amar Kuchinad as its new global CEO following the resignation of founder Dmitry Tokarev.
Kuchinad emphasized a renewed focus on the company’s global growth strategy, particularly in markets such as Hong Kong, Abu Dhabi, and Switzerland.
“Refining Copper’s global growth strategy has been my priority since joining, and this has necessitated key decisions on our direction and approach,” Kuchinad stated.
He described the withdrawal of the UK crypto license application as a strategic move to prioritize growth in regions offering better opportunities.
Copper has received substantial financial backing from Barclays investment, underscoring its significance in the global crypto ecosystem.
Despite withdrawing from the UK licensing process, the firm remains committed to its home market and is exploring expansion opportunities abroad.
“Withdrawing our application to register as a crypto asset institution in the UK is the right decision for our business and reflects our refocus on driving growth in priority markets and the expansion of our product portfolio,” Kuchinad added.
As Copper redirects its efforts towards international markets, its strategy reflects a broader industry trend of adapting to regulatory challenges. The company plans to strengthen its presence in the United States and the Middle East while maintaining its operations in Europe.
“We remain committed to the UK, which has been, and will continue to be, a central part of the Copper story,” Kuchinad reaffirmed.
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