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Copper Drops FCA License Application Amid Regulator’s Tough Stance on Crypto Firms
In a surprise move, Copper has withdrawn its Financial Conduct Authority (FCA) license application amidst the regulator’s harsh stance on crypto firms. The decision comes after the FCA published a report in September stating that an overwhelming 90% of applications from crypto companies failed to meet regulatory standards.
The report highlighted serious concerns over money laundering controls, with approximately 87% of applicants failing to comply. This has led to only four licenses being issued by the UK regulator in the past year, alongside nine rejections and 15 withdrawals. The FCA has also noted that as of its annual report, just 44 crypto firms had secured money laundering registration.
In light of this development, Copper’s decision to withdraw its license application is likely a response to the FCA’s strict requirements. Nikhil Rathi, CEO of the FCA, emphasized the importance of providing an effective and efficient authorizations service, stating that the UK must “play a leading role internationally” in shaping global standards for crypto, sustainability, and non-bank finance.
The move underscores the significant regulatory hurdles faced by cryptocurrency firms seeking to operate within the UK. As the market continues to evolve, it remains unclear whether stricter regulations will lead to increased investor trust or further stagnate innovation within the sector.
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Source: coinjournal.net
