Copper Technologies Withdraws Crypto License Application in the UK

Copper Technologies Withdraws Crypto License Application in the UK: What It Means

According to reports from Cointelegraph, Copper Technologies, a notable player in the cryptocurrency custody space backed by Barclays, has officially decided to withdraw its application for a cryptocurrency license in the United Kingdom. This significant move marks a strategic shift for the firm, which has chosen to refocus its efforts on international markets under a new leadership structure.

Leadership and Strategic Changes

Recently, Copper Technologies has seen a leadership change, with former UK Chancellor Philip Hammond taking on the role of chairperson. The company, which stands as one of the UK's largest crypto enterprises, has received considerable investment from Barclays. The prior CEO, Dmitry Tokarev, who was instrumental in founding Copper in 2018, stepped down in October, paving the way for Amar Kuchinad, an experienced banking executive, to assume the position of global CEO.

Regulatory Challenges in the UK

In 2022, Copper faced significant regulatory challenges, as it failed to secure permanent registration with the UK’s Financial Conduct Authority (FCA) when the FCA updated its register of crypto asset businesses. This setback forced the firm to reconsider its strategy and pivot towards obtaining regulatory approvals and licenses in various international markets, specifically focusing on regions such as Switzerland, Hong Kong, and Abu Dhabi.

New Global Growth Strategy

Amar Kuchinad's appointment as the new global CEO in October 2024 has been pivotal in reshaping Copper’s global growth strategy. Kuchinad has voiced the need for refining the company's direction, which has led to substantial decisions about its future. As the company shifts its focus internationally, it remains committed to expanding its footprint in key regions.

FCA's Regulatory Landscape

The withdrawal of Copper's FCA license application aligns with broader challenges faced by the cryptocurrency sector in the UK. The FCA's latest report indicated that nearly 90% of all crypto license applications were unsuccessful as of September 2024. With their annual report published on September 5, it was revealed that out of 35 application attempts made by cryptocurrency firms in the last year, only four were granted approval, while 15 were withdrawn and nine faced rejection due to inadequate money laundering controls.

Conclusion

Copper Technologies' withdrawal from the FCA licensing process illustrates the ongoing difficulties that cryptocurrency companies encounter in meeting regulatory standards in the UK. As the FCA continues to raise the bar for compliance, firms like Copper are finding it increasingly necessary to explore alternative global markets for growth and expansion.

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