Crypto custodian Copper Technologies Ltd. has withdrawn its application to register with the UK’s Financial Conduct Authority (FCA), signalling a shift in focus to international hubs under its new CEO, Amar Kuchinad.
According to Bloomberg, Copper’s decision to pivot away from the UK follows its failure to obtain permanent registration with the FCA after updates to its cryptoasset register in 2022. Additionally, the UK government’s introduction of a new regulatory framework for cryptoassets has further influenced this shift in focus.
Kuchinad, who became CEO in October after Dmitry Tokarev’s departure, has prioritized refining Copper’s global growth strategy. As part of this new direction, the company plans to seek licenses and self-regulatory approvals in critical international markets such as Switzerland, Hong Kong, and Abu Dhabi instead of pursuing its efforts in the UK.
The report also pointed out that Copper, led by former UK Chancellor Philip Hammond, was once one of the largest crypto firms established in the UK. However, the company is now concentrating on expanding internationally due to increasing competition from global financial centres, particularly as the US market becomes more crypto-friendly under President-elect Donald Trump. They plan to apply for custodial or money transmitter licenses in the United States, primarily based in New York.
Copper’s FCA license withdrawal comes after the FCA proposed new measures to enhance oversight of the cryptocurrency industry. These measures include a ban on public offerings by unregulated firms. The proposal seeks to extend restrictions on crypto promotions, which are currently limited to unsolicited communications targeting UK residents. Under the new rules, unregulated firms would be prohibited from making public offers, though there may be exceptions for authorized platforms or those that qualify for specific waivers. The new framework mandates firms to implement controls to prevent consumer harm and market abuse, aligning the UK’s cryptocurrency sector with broader financial regulations.
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