Barclays-Backed Crypto Firm Copper Withdraws UK License Application

As of December 20, 2024, Copper Technologies, a prominent cryptocurrency custody firm backed by British multinational bank Barclays, has withdrawn its application for a crypto license in the United Kingdom. This decision marks a significant shift in the company’s strategy under its new CEO, Amar Kuchinad.

Table of Contents

Background and Context

Copper Technologies was founded in 2018 by Dmitry Tokarev and has since received millions of dollars in investment from Barclays. The firm has been at the forefront of the UK crypto landscape, with a significant presence in the country. However, despite its size and influence, Copper failed to secure permanent registration with the UK’s Financial Conduct Authority (FCA) in 2022.

New CEO’s Vision

Amar Kuchinad, who took over as global CEO of Copper in October 2024, has stated that his priority is refining the company’s global growth strategy. This involves making key decisions about direction and approach, including withdrawing the UK license application. In a statement, Kuchinad emphasized that Europe, the US, and the Middle East remain the firm’s top markets for expansion.

Prioritizing Priority Markets

Copper has been shifting its focus towards obtaining regulatory approvals and licenses in foreign hubs, such as Switzerland, Hong Kong, and Abu Dhabi. The company aims to strengthen its presence in the United States while driving growth in Hong Kong and Abu Dhabi. This strategic decision reflects Kuchinad’s commitment to refining Copper’s global expansion approach.

Statement from Amar Kuchinad

"We’re refocusing on our priority markets and expanding our product portfolio," said Kuchinad. "This withdrawal is the right decision for our business, and we remain committed to the UK, which has been, and will continue to be a central part of the Copper story."

FCA’s Regulatory Challenges

The FCA’s regulatory challenges in 2024 are well-documented. According to the regulator’s 2024 annual report, nearly 90% of crypto license applicants failed to meet its standards as of September 2024. The FCA has rejected or withdrawn over 87% of registrations due to weak money laundering controls.

FCA Registration Statistics

Approved: 4 out of 35 applications
Withdrawn/Rejected: 15 and 9, respectively
Total Rejected/Submitted Invalid Applications: 24

The FCA has emphasized the importance of robust money laundering controls in its assessment process. The regulator has noted that submissions without key components necessary for evaluation or those with poor-quality components are deemed invalid.

Conclusion

Copper Technologies’ decision to withdraw its UK crypto license application marks a significant shift in the company’s strategy under new leadership. While this move may come as a surprise, it reflects Kuchinad’s commitment to refining Copper’s global growth approach and prioritizing priority markets. As the regulatory landscape continues to evolve, firms like Copper will need to adapt and navigate complex international regulations.

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