Copper Technologies Ltd., a London-based cryptocurrency custodian chaired by former UK Chancellor of the Exchequer Philip Hammond, has withdrawn its application to register with the UK’s Financial Conduct Authority (FCA).
The company announced on Friday that it will now concentrate on expanding its operations internationally under the leadership of its new Chief Executive Officer, Amar Kuchinad.
Kuchinad, who took over as CEO in October, stated, “Refining Copper’s global growth strategy has been my priority since joining, and this has necessitated key decisions on our direction and approach.”
His appointment follows the departure of Dmitry Tokarev, the firm’s founder and previous CEO, who launched the business in 2018.
The UK has been striving to attract and support technology startups, including those in the cryptoasset sector. However, it faces stiff competition from global financial hubs, particularly in jurisdictions offering crypto-friendly regulatory frameworks.
Copper’s decision comes as the UK government, led by the Labour party, outlined a new regulatory framework for cryptoassets last month.
Copper had previously failed to secure permanent UK registration when the FCA updated its cryptoasset business register in 2022. Since then, the company has turned its focus abroad, seeking licenses and self-regulatory approvals in countries like Switzerland, Hong Kong, and Abu Dhabi.
The firm is also eyeing expansion in the United States, where it plans to pursue regulatory custodial or money-transmitter licenses.
This aligns with a reported strategy to capitalise on the US market under a potentially pro-crypto administration.
Kuchinad, who operates primarily out of New York, highlighted the company’s ambitions for the US during remarks made in October.
This strategic pivot underscores the challenges crypto businesses face in navigating the UK’s regulatory environment while also highlighting the global nature of competition for innovation-driven companies.
