Regulatory Concerns Prompt Crypto Custody Firm Copper to Withdraw UK Registration Application

Crypto Custody Firm Copper Withdraws UK Registration Amid Regulatory Concerns

Copper, a prominent crypto custody company, has withdrawn its Financial Conduct Authority (FCA) license application in the UK, amidst growing regulatory concerns. The move comes after the FCA’s report highlighted that most of the applications for licensing by crypto firms did not meet set regulatory standards.

According to reports, the FCA rejected or saw about 87% of applicants withdraw over failures related to money laundering controls. This means that only a small percentage of applicants were deemed worthy of obtaining an FCA license. The regulator has licensed only four crypto firms in the past year, with nine rejected and fifteen withdrawn.

The FCA’s report in September highlighted that around 90% of applications did not meet the regulatory standards set by the authority. This lack of compliance is a significant concern for regulators globally as it creates an environment where money laundering risks are high.

Copper’s decision to withdraw its license application underscores the growing uncertainty and regulatory hurdles faced by crypto firms in the UK. The move highlights the difficulties faced by companies in meeting regulatory requirements, particularly those related to anti-money laundering controls.

The FCA has emphasized the importance of providing a seamless authorizations service for financial services companies, stating that it will continue to play a leading role internationally in shaping global standards for crypto, sustainability, and non-bank finance.

In conclusion, Copper’s decision to withdraw its license application is an indication of the regulatory hurdles faced by crypto firms in the UK. The situation highlights the need for more stringent regulation and oversight to ensure that companies operate within the bounds of the law, protecting consumers and investors alike.

Source: coinjournal.net