Barclays-backed cryptocurrency custody firm Copper Technologies is scaling back its efforts to secure an operating license in the United Kingdom to focus elsewhere.
According to a December 20 Bloomberg report, Copper has withdrawn its application to be licensed and regulated under the UK’s Financial Conduct Authority (FCA).
The London-based firm will focus on expanding to other global hubs despite being one of the largest crypto-based businesses in the UK.
The new strategy will be spearheaded by the new CEO, Amar Kuchinad, who took over the role in October after former CEO and founder Dmitry Tokarev stepped down.
Kuchinad, who previously served as a managing director at Goldman Sachs and a senior policy advisor with the United States Securities and Exchange Commission, said that refining the company’s “global growth strategy” has been his “priority” since taking on the role, requiring “key decisions” to shape its “direction and approach.”
Kuchinand is overseeing ClearLoop, the firm’s off-exchange settlement solution and will also work on strengthening the firm’s presence in the US, where it plans to seek regulatory custodial or money-transmitter licenses.
Beyond the US, the Copper is seeking operational licenses in Switzerland, Hong Kong and Abu Dhabi to drive its “institutional first” approach.
Founded in 2018, Copper offers institutional investors exposure to the cryptocurrency market through its secure custody solutions, trading infrastructure, and settlement services, aiming to bridge the gap between traditional finance and digital assets.
The company failed to secure permanent registration with the FCA back in 2022, which prompted it to shift to this new strategy.
Despite setbacks, Copper has continued to expand its offerings over the past year, most recently adding support for the USDC stablecoin on the Sui blockchain, becoming one of the first digital asset custodians to integrate the stablecoin on the layer-1 network.
Earlier this year, it enabled staking support for the Mina Protocol, prior to which it partnered with proof of stake blockchain Hedera.
Enhancing transparency in the crypto sector
Meanwhile, in the UK, Copper joins a flurry of other firms that have failed to register with FCA due to not meeting its stringent licensing standards.
According to the regulator, 90% of crypto firms have implemented poor anti-money laundering standards, which led to only 4 out of 35 applicants being approved in 2024 and 15 withdrawing their applications.
On December 16, the FCA unveiled a proposal that would introduce stricter rules for admissions and disclosures, requiring authorized firms to provide accurate and transparent information when listing crypto-assets on trading platforms.
The proposal aims to enhance market integrity and reduce the risk of market manipulation, thereby creating a secure marketplace for investors as it continues to view cryptocurrencies as high-risk investments.
As a part of the UK government’s bid to enhance transparency in the crypto space, the Bank of England recently mandated that businesses holding or planning to hold crypto assets in their balance sheets must report their exposure to the Prudential Regulation Authority.
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