Copper has withdrawn its UK registration application. The cryptocurrency custody company failed to register for the first time in 2022 amid changes made by the UK's Financial Conduct Authority regarding crypto companies.
Copper Technologies, a UK-based cryptocurrency custodian, has canceled plans to register with the country's Financial Conduct Authority (FCA).
Bloomberg said in a report on Friday that the London-based company, which is chaired by former British finance minister Philip Hammond, had instead chosen an overseas location. Copper's pivot comes as the company looks to build its business with new locations around the world, with new CEO Amal Coucinard spearheading its growth strategy.
Founded in 2018, Copper has grown to become one of the UK's largest cryptocurrency-focused businesses.
Part of the growth was due to the company's failure to secure FCA registration in 2022. In recent years, Copper has won licenses and regulatory approvals in Switzerland, Hong Kong, and Abu Dhabi, United Arab Emirates.
The crypto custodian also revealed plans to expand its services to the US, but the decision hinged on the expected pro-crypto environment under President Donald Trump.
The company did not meet regulatory standards
Copper has withdrawn its FCA license application following a report from the UK regulator that most license applications by crypto companies do not meet set regulatory standards. The financial markets regulator said in a September report that the assessment affected about 90% of companies that applied.
The FCA rejected or declined approximately 87% of applicants due to deficiencies related to money laundering regulations. UK regulators have only approved four crypto companies in the past year, with nine rejected and 15 withdrawn. According to the FCA, at the time of its annual report, 44 crypto companies had secured money laundering registration.
“We recognize that if we want the UK to be the best place in the world for the development of financial services, it is important to provide an effective and efficient licensing service. We continue to play a leading role internationally by shaping global standards on cryptocurrencies, sustainability and non-bank finance, to name just a few,” said Nikhil Rati, Chief Executive Officer of FCA. did.
