Copper, a crypto custody firm, withdraws its U.K. registration application.

Copper, a digital asset custody firm, has announced that it is withdrawing its application to become registered with the U.K.’s financial services regulator, the Financial Conduct Authority (FCA). This decision was made as part of the company’s strategic shift towards focusing on international opportunities.

Background on Copper

Copper is a London-based custodian chaired by former U.K. Chancellor of the Exchequer Philip Hammond. The company has been at the forefront of providing secure custody and trading services for tokenized assets, including BlackRock’s BUIDL. In October, Copper announced its new strategy, which prioritizes international growth opportunities.

New Global CEO Appointed

As part of this strategic shift, Amar Kuchinadas was appointed as Copper’s new global CEO in October. He has been tasked with leading the firm’s global growth strategy, with a focus on strengthening the company’s presence in the U.S.

Why Copper Withdrew its Application

Copper cited that withdrawing its application to register as a cryptoasset institution in the U.K. was the right decision for the business. This move reflects the company’s refocus on driving growth in priority markets, such as the U.S., Europe, and the Middle East.

Quote from Amar Kuchinadas

"Withdrawing our application to register as a cryptoasset institution in the U.K. is the right decision for our business, and reflects our refocus on driving growth in priority markets," said Amar Kuchinadas, CEO of Copper.

What This Means for the Industry

This development marks the latest in a series of withdrawals from the FCA’s registration process. Between January 10, 2020, and December 1, 2024, 69% of applications were withdrawn, according to data from the FCA. This trend highlights the challenges faced by crypto companies in navigating regulatory requirements.

Copper’s Future Plans

Despite withdrawing its application, Copper remains committed to providing secure custody and trading services for tokenized assets. The company will continue to capitalize on opportunities across priority markets, including the U.S., Europe, and the Middle East.

Focusing on International Growth

As part of its new strategy, Copper is prioritizing international growth opportunities. This decision reflects the company’s recognition that the crypto market is increasingly global in nature.

Benefits of Focusing on International Markets

Focusing on international markets offers several benefits for companies like Copper. These include:

• Access to a larger customer base: By expanding into new markets, Copper can tap into a broader range of potential customers.
• Diversification of revenue streams: By offering services in multiple jurisdictions, Copper can reduce its reliance on any single market or regulatory environment.
• Increased competitiveness: By being active in multiple markets, Copper can gain a competitive edge over rivals that are limited to specific regions.

Challenges Facing Crypto Companies

The crypto industry has faced numerous challenges in recent years. These include:

• Regulatory uncertainty: The lack of clear regulations and guidelines has created uncertainty for companies operating in the space.
• Market volatility: The price of cryptocurrencies can be highly volatile, making it challenging for companies to maintain stable revenue streams.
• Competition: The crypto market is increasingly crowded, with new entrants competing for market share.

Conclusion

Copper’s decision to withdraw its application and focus on international growth opportunities reflects the company’s adaptability in response to changing market conditions. As the crypto industry continues to evolve, companies like Copper will need to remain agile in order to stay ahead of the competition.

Stay Informed

To stay up-to-date with the latest news and developments in the crypto industry, be sure to follow reputable sources such as:

• CoinDesk: A leading provider of news and insights on cryptocurrency and blockchain technology.
• The Block: A digital publication that offers comprehensive coverage of the crypto market.
• CoinMarketCap: A popular platform for tracking cryptocurrency prices and market capitalization.

By staying informed, you can make more informed decisions about your investments in the crypto space.