The UK-based crypto custodian is shifting its focus away from the UK regulatory framework.
The firm aims to secure operating licenses in the US, Hong Kong, Switzerland, and Abu Dhabi for broader growth.
New CEO Amar Kuchinad is spearheading Copper’s pivot to international markets, targeting favorable crypto jurisdictions.
Crypto custodian Copper Technologies, based in the United Kingdom, has officially withdrawn the FCA registration it had submitted previously, focusing on international development according to a Bloomberg report. It comes after the company appointed Amar Kuchinad as the new chief executive to head the company in October.
Kuchinad who took over the CEO position from Dmitry Tokarev said that he would focus on polishing Copper’s growth model and expanding the company’s market reach across the global space. As for regulation, the company intends to gain licenses in such friendly jurisdictions as the United States and Abu Dhabi. One of the New York-based companies, Kuchinad pointed out that the company also wants to establish itself in areas with a good regulatory environment.
Focus on U.S. and International Licensing
Under the leadership of Kuchinad, Copper Technologies is particularly interested in entering the U.S. market. The firm plans to apply for custodial and money-transmitter licenses. Given the potential for a more pro-crypto regulatory environment. According to Kuchinad, this shift aligns with the firm’s broader strategy of capitalizing on regions where cryptocurrency regulation is clearer and more supportive.
Copper is also targeting licensing in other prominent jurisdictions for cryptocurrency activity. Such as Hong Kong, which has introduced regulations to attract global crypto firms, and Switzerland, for its crypto-friendly policies. Abu Dhabi also remains on Copper's radar due to its growing reputation for blockchain innovation and regulatory clarity.
Copper’s History and FCA Challenges
Established in 2018, and Philip Hammond as its chairman, Copper Technologies is one of the leading cryptocurrency custodians in the United Kingdom. However, the company had issues with the FCA and failed to get permanent registration When the regulator refreshed the list of crypto assets in 2022. This difficulty was attributed to the FCA's stringent requirements and the evolving regulatory landscape in the UK.
The FCA's recent initiatives include proposed regulations that may further constrain the development of the crypto industry within the country. These measures involve potential restrictions on public cryptocurrency conducted by established trading platforms. Copper’s decision to shift focus aligns with its goal of mitigating risks associated with the UK's restrictive regulatory environment.
Copper’s strategic withdrawal from the UK market highlights its focus on securing opportunities in regions with clearer regulatory frameworks. As the company pivots toward international growth, its approach reflects the broader trend of crypto firms. Thus seeking favorable jurisdictions to support their operations and innovations.
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