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The crypto company chaired by former chancellor Philip Hammond has dropped its second attempt to register in the UK after failing for more than three years to be approved by the British financial regulator.
Copper, which provides trading, storage and settlement of cryptocurrencies, said on Friday that it had withdrawn its application to be on the Financial Conduct Authority’s Cryptoasset Register.
The withdrawal marks a blow for Copper which has failed to gain acceptance by the FCA for several years, and comes as traditional investors and institutions show renewed appetite for crypto. The price of bitcoin has hit record highs of more than $100,000 and has more than doubled since the start of this year, as traders celebrate Donald Trump’s US election win.
Companies operating in the UK and offering certain crypto services are required to register with the FCA, showing that they comply with its anti-money laundering and counterterrorism financial controls.
Copper first applied for registration in 2021, but dropped that bid in June 2022. Hammond, who joined the company as chair in 2023, blamed the FCA’s slowness for the company failing to get registered. Hammond told the Financial Times at the time that he hoped “UK authorisation will be forthcoming in the future”, adding: “We are very much hoping to migrate back to London.”
Copper was then forced to register in Switzerland and has since gained regulatory approval in Abu Dhabi. This second withdrawal underscores Copper’s difficulty in gaining approval from the UK regulator.
The FCA’s Cryptoasset system has been operating since 2020 and requires companies that offer digital asset exchange or custody services from the UK to UK customers to be registered. Copper provides custody services to UK-based clients through its Swiss entity, according to a person familiar with the matter.
“Withdrawing our application to register as a cryptoasset institution in the UK is the right decision for our business and reflects our refocus on driving growth in priority markets,” said Amar Kuchinad, who has been chief executive of Copper since October and is based mainly in New York.
“We remain committed to the UK, which has been, and will continue to be, a central part of the Copper story,” added Kuchinad.
The FCA did not immediately respond to a request for comment.
Copper was forced to launch a review of its event approval and sponsorship policies earlier this year when the Financial Times revealed that it had hosted an event in London where sushi was served off the bodies of scantily clad models. Standard Chartered-backed crypto company Zodia Custody stopped working with Copper as a result of the event.
Copper made a net loss of $62.1mn in 2023, compared with a net loss of $84.1mn in 2022, according to accounts filed at Companies House.
