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Copper Drops FCA License Application Amidst Regulatory Concerns
In a surprising move, crypto custody firm Copper has withdrawn its license application with the Financial Conduct Authority (FCA) in the United Kingdom. This decision comes amid growing regulatory concerns and challenges faced by cryptocurrency companies seeking to obtain licenses from the FCA.
As reported earlier, the FCA had issued a damning report in September stating that over 90% of crypto firms that applied for licensing failed to meet the necessary regulatory standards. These failures were primarily related to inadequate money laundering controls.
In response to these findings, Copper’s decision to withdraw its application suggests that the firm may not be willing or able to address these regulatory concerns. The FCA had already rejected a significant number of applications and witnessed numerous withdrawals from firms, citing issues with anti-money laundering (AML) and combating the financing of terrorism (CFT).
It is essential for crypto companies like Copper to adhere to rigorous AML/CFT regulations, ensuring that they are capable of effectively monitoring and controlling financial transactions related to cryptocurrency services.
In recent years, the UK has struggled to effectively regulate the crypto sector, with many firms withdrawing or failing their licensing applications due to non-compliance.
Source: coinjournal.net
