Copper Technologies Withdraws UK Crypto License Application

According to Cointelegraph, Copper Technologies, a cryptocurrency custody firm supported by Barclays, has reportedly withdrawn its application for a crypto license in the United Kingdom. The decision to withdraw from the UK’s Financial Conduct Authority (FCA) registration process was made on December 20, as the company plans to concentrate on international markets under its new leadership. Copper, chaired by former UK Chancellor Philip Hammond, is recognized as one of the largest crypto enterprises in the UK, having received substantial investment from Barclays. The company’s former CEO, Dmitry Tokarev, who founded Copper in 2018, stepped down in October. Amar Kuchinad, a seasoned banking professional, has since taken over as the global CEO. In 2022, Copper was unable to secure a permanent UK registration when the FCA updated its list of registered crypto asset businesses. Since then, the firm has been redirecting its efforts towards obtaining regulatory approvals and licenses in other regions, including Switzerland, Hong Kong, and Abu Dhabi. The expansion into these areas, along with strengthening its presence in the United States, was highlighted as a key component of Copper’s global growth strategy in October 2022. Amar Kuchinad, appointed as the new global CEO in October 2024, emphasized the importance of refining Copper’s global growth strategy, which has led to significant decisions regarding the company’s future direction. Despite efforts to reach Copper for comments on the FCA license withdrawal, no response was received at the time of publication. The withdrawal of Copper’s FCA license application coincides with the FCA’s report that nearly 90% of crypto license applicants failed to meet its standards as of September 2024. The FCA’s 2024 annual report, released on September 5, indicated that over 87% of crypto registrations were either withdrawn, rejected, or refused due to inadequate money laundering controls. Out of 35 applications for cryptocurrency firm registration in the past year, only four were approved, while 15 were withdrawn and nine were rejected. The FCA noted that submissions lacking essential components or of poor quality were deemed invalid.