Copper Technologies Ltd., a well-known crypto custody company in the UK, has chosen to drop its plans to register with the Financial Conduct Authority (FCA). The company, led by former UK Chancellor Philip Hammond, is making a strategic change to grow its international operations with new CEO Amar Kuchinad at the helm, as reported by Bloomberg.
Copper started in 2018 and quickly became one of the biggest crypto companies in the UK. Its growth has been affected by not getting FCA registration in 2022. Copper has gotten licenses and approvals in Switzerland, Hong Kong, and Abu Dhabi. The company is looking to expand into the United States, expecting a friendly regulatory environment with the Trump administration.
Withdrawing from the FCA licensing process matches the regulator’s recent discovery that most crypto firms did not meet the required standards. A September report from the FCA showed that about 90% of licensing applications from crypto companies failed to meet the necessary criteria, with 87% of applicants either being rejected or pulled out because of poor money laundering controls. In the last year, the FCA has licensed just four crypto firms. Nine applications were turned down, and 15 were pulled back.
Nikhil Rathi, CEO of the FCA, highlighted how crucial a good authorization process is for making the UK a top center for financial services. He confirmed the FCA’s dedication to setting global crypto, sustainability, and non-bank finance standards. Copper is shifting to an international approach because of tough rules in the UK and its goal to succeed in a better global setting.
