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Barclays-Backed Copper Withdraws Uncertain UK Crypto License Application
Copper Technologies, a firm backed by Barclays, has officially withdrawn its application for a crypto license in the United Kingdom. This decision follows regulatory hurdles that led the company to prioritize international markets under its new global CEO, Amar Kuchinad, who took office in October 2024.
Copper’s withdrawal highlights its strategic shift as it focuses on expanding in Switzerland, Hong Kong, and Abu Dhabi, regions that have been crucial to its growth strategy since 2022. Chaired by former UK Chancellor Philip Hammond, Copper remains one of the largest cryptocurrency firms in the UK, despite its departure from the country’s licensing framework.
Copper’s regulatory journey in the UK began in 2022 when it failed to secure permanent registration due to strict standards set by the Financial Conduct Authority (FCA). The FCA introduced these new regulations, resulting in a high rejection rate for crypto businesses. Copper’s inability to meet these criteria prompted a strategic pivot towards international markets.
The withdrawal of its application aligns with Copper’s broader growth strategy. Amar Kuchinad emphasized that refining Copper’s global growth strategy has been his priority since joining the company and necessitates key decisions on the direction and approach.
Despite withdrawing its UK license application, Copper reiterated its commitment to the region, describing it as a central part of the company’s history and operations.
Copper is now focusing on securing regulatory approvals in Switzerland, Hong Kong, and Abu Dhabi, where it aims to strengthen its presence. This expansion aligns with the company’s announcement in October 2022 to prioritize growth in Hong Kong and the Middle East, alongside increasing its presence in the United States.
The move highlights Copper’s dedication to expanding its product portfolio and targeting regions with more straightforward regulatory frameworks. The firm views these markets as critical to its global strategy, with efforts underway to secure necessary approvals and licenses.
In related news, the FCA reported significant challenges for crypto firms seeking registration in the UK. According to its 2024 annual report, an astonishing 87% of applications were either withdrawn, rejected, or refused. The majority of these failures were attributed to inadequate money laundering controls.
Source: coinchapter.com
