Copper Technologies, a cryptocurrency custody company backed by Barclays and focused on other markets, has scaled back its attempts to obtain a license to operate in the United Kingdom.
A December 20, 2012 Bloomberg article stated that Copper had withdrawn its request to become licensed and regulated by the UK Financial Conduct Authority.
The firm, based in London, will concentrate on expanding into other global hubs even though it is one of the UK’s largest crypto businesses.
Amar Kuchinad will spearhead the new strategy. He took on the position in October, after Dmitry Tokarev, the former founder and CEO of the company, stepped down.
Kuchinad was previously a managing Director at Goldman Sachs and senior advisor to the United States Securities and Exchange Commission. He said his “priority”, since taking over the role, has been refining “the company’s global growth strategy.” This required “key decisions” in order to determine its “direction and “approach.”
Kuchinand will oversee ClearLoop, a firm-wide solution for off-exchange settlements, and work to strengthen the firm’s presence in US where the company plans to apply for regulatory money-transmitter or custodial licenses.
Copper has also applied for operating licenses in Switzerland and Abu Dhabi, to support its “institutional-first” strategy.
Copper, founded in 2018, offers institutional investors access to the crypto market via its trading infrastructure and settlement services. It aims to bridge the divide between traditional finance, digital assets, and secure custody.
In 2022 the company was unable to obtain permanent registration from FCA, and this prompted them to adopt a new strategy.
Copper, despite setbacks in the last year, has expanded its offering. Most recently, it added support for USDC stablecoins on the Sui Blockchain, making them one of the very first digital assets custodians who integrated the stablecoins on layer-1.
It enabled stake support earlier this year for the Mina Protocol. Prior to that, it had partnered with Hedera, a blockchain based on proof-of-stake.
Transparency in the Crypto Sector
Copper has joined a number of firms in the UK that failed to register their business with FCA because they did not meet its strict licensing requirements.
The regulator claims that 90% of the crypto firms had implemented inadequate anti-money laundering measures, resulting in only four out of 35 applicants receiving approvals by 2024, and fifteen withdrawing their application.
The FCA announced a proposal on December 16 that will introduce more strict rules regarding admissions and disclosures. Authorized firms must provide accurate, transparent and complete information to list crypto assets on trading platforms.
This proposal is designed to increase market integrity, reduce market manipulation risk and create a safe marketplace for investors. It continues to consider cryptocurrencies to be high-risk investments.
In an effort to increase transparency, the Bank of England has mandated businesses that hold or plan to own crypto assets on their balance sheet to report this exposure to the Prudential Regulation Authority.
The post Crypto custodian Copper Drops UK Licensing Plans, Eyes US and Global Expansion may be updated as new information becomes available.
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