Copper Technologies Withdraws FCA Application, Shifts Focus Overseas

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As a seasoned researcher with a keen interest in the ever-evolving world of cryptocurrencies, I find myself intrigued by Copper Technologies Ltd.’s recent decision to withdraw its application for registration with the UK’s Financial Conduct Authority (FCA). Having closely followed the crypto landscape for years now, I’ve seen firsthand how regulatory hurdles can make or break a company.

According to reports, Copper Technologies Ltd., a well-known cryptocurrency custodian and infrastructure provider, allegedly withdrew its registration application with the UK’s Financial Conduct Authority (FCA) on December 20th. This move appears to be part of the company’s strategic plan under the leadership of its new CEO, Amar Kuchinad, who is focused on growing Copper’s operations in international financial centers.

As a researcher, I’ve been tracking the progress of a cryptocurrency company I’ve been following since its inception in 2018 – one that was once spearheaded by the former UK Chancellor of the Exchequer, Philip Hammond. Initially, this company held a temporary registration with the Financial Conduct Authority (FCA) in the UK. However, even though it aimed to comply with the FCA’s updated regulatory framework for crypto asset businesses, it did not secure full approval under those new guidelines.

It’s been quite a challenge for many crypto companies to meet the tough regulations set by the FCA (Financial Conduct Authority). By September 2024, it’s estimated that around 90% of applicants haven’t managed to pass its standards, with just four out of 35 applications getting approved in the last year. This strict regulatory atmosphere has even forced companies like Copper and industry titans such as Binance to abandon their applications.

Shifting Priorities

In light of these regulatory hurdles, Copper has been gradually shifting its strategic direction towards regions offering more advantageous regulations. The corporation has made it a priority to secure licenses in Europe, Hong Kong, and Abu Dhabi. Notably, with Kuchinad appointed as the new CEO in October, Hammond indicated Copper’s ambition for worldwide expansion. “I am optimistic that we now have the right team to bring about the next chapter of Copper’s global growth journey,” he expressed at the time.

It’s worth mentioning that Copper has already gained some ground in Europe. The company functions as a reliable crypto custodian in Switzerland, recognized by the Swiss Financial Services Standards Association (VQF) and the Financial Market Supervisory Authority (FINMA). Furthermore, Copper also possesses a regulatory license issued by Abu Dhabi’s Financial Services Regulatory Authority (FSRA), enabling it to provide custody services for tokenized money market funds in that region.

Stringent Scrutiny in UK’s Crypto Sector

In the world of cryptocurrencies, the United Kingdom maintains its significance as a key contributor, holding the top spot among countries in Central, Northern, and Western Europe (CNWE), and standing second globally in terms of raw transaction volume, as indicated by a 2023 Chainalysis study.

Nevertheless, the strict regulatory landscape creates hurdles for companies looking to conduct business within this country. The UK government is striving to incorporate cryptocurrencies into its financial system via the Financial Services and Markets Bill. This has led to stringent regulations for crypto businesses, prompting them to reconsider their strategies.

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2024-12-20 15:04