YEREVAN (CoinChapter.com) — Copper Technologies, backed by Barclays, has officially withdrawn its application for a crypto license in the United Kingdom. The announcement, made on Dec. 20, follows regulatory hurdles that led the firm to prioritize international markets under its new global CEO, Amar Kuchinad, who was appointed in October 2024.
The decision highlights Copper’s strategic shift as it focuses on expanding in Switzerland, Hong Kong, and Abu Dhabi, regions that have been central to its global growth strategy since 2022. Chaired by former UK Chancellor Philip Hammond, Copper remains one of the largest cryptocurrency firms in the UK, despite its move away from the country’s licensing framework.
Copper’s Regulatory Journey in the UK
Copper’s challenges with the Financial Conduct Authority (FCA) began in 2022 when it failed to secure permanent registration. The FCA had introduced strict standards for crypto businesses, leading to a high rate of rejected applications. Copper’s inability to meet these criteria prompted a strategic pivot to international markets.
Copper confirmed that withdrawing its application aligns with its broader growth strategy. Amar Kuchinad stated:
“Refining Copper’s global growth strategy has been my priority since joining, and this has necessitated key decisions on our direction and approach.”
Despite the withdrawal, Copper emphasized its ongoing commitment to the UK, describing it as a central part of the company’s history and operations.
Copper Prioritizes Switzerland, Hong Kong, and Abu Dhabi
Copper has shifted its focus to regulatory approvals in Switzerland, Hong Kong, and Abu Dhabi, where it aims to strengthen its presence. This expansion aligns with the company’s October 2022 announcement prioritizing growth in Hong Kong and the Middle East, alongside its increasing presence in the United States.
The move highlights Copper’s commitment to expanding its product portfolio and targeting regions with clearer regulatory frameworks. The company views these markets as critical to its global strategy, with efforts underway to secure necessary approvals and licenses.
FCA Reports High Rejection Rates for Crypto Firms
Copper’s withdrawal comes as the FCA reported significant challenges for crypto firms seeking registration in the UK. According to its 2024 annual report, 87% of applications were either withdrawn, rejected, or refused. Most of these failures were attributed to inadequate money laundering controls.
Between September 2023 and September 2024, the FCA reviewed 35 applications, approving only four. Fifteen applications were voluntarily withdrawn, while nine were outright rejected. The FCA noted:
“We have rejected submissions that didn’t include key components necessary for us to carry out an assessment.”
