In a recent statement, digital asset custody firm Copper announced that it has withdrawn its application to become registered with the UK’s financial services regulator, the Financial Conduct Authority (FCA). This decision marks a significant shift in the company’s strategy, as it focuses on expanding its global presence.
A Strategic Shift for Copper
The company, chaired by former UK Chancellor of the Exchequer Philip Hammond, stated that the withdrawal of its application was part of its strategic shift. According to Copper, registering with the FCA no longer aligns with the company’s future business trajectory. This move indicates a significant change in direction for the firm, as it seeks to capitalize on opportunities across priority markets.
New Global Growth Strategy
In October, Copper appointed Amar Kuchinadas as its new global CEO. As part of his role, Kuchinadas has been tasked with leading the company’s global growth strategy. His focus is on strengthening Copper’s presence in the US market, while also exploring opportunities in Europe and the Middle East.
Not Alone: 69% Withdrawal Rate
Copper’s decision to withdraw its application is not an isolated incident. According to data from the FCA, between January 10, 2020, and December 1, 2024, a staggering 69% of applications were withdrawn. This trend suggests that companies are re-evaluating their strategies for operating in the UK’s regulatory environment.
Opportunities Abound
Copper is now looking to capitalize on opportunities across priority markets. The company believes that withdrawing its application from the FCA will enable it to focus on driving growth in key regions. With a strong presence in the US, Europe, and the Middle East, Copper is well-positioned to take advantage of emerging trends in the digital asset market.
Amar Kuchinadas’ Vision
In a statement, Amar Kuchinadas, CEO of Copper, commented on the decision to withdraw from the FCA registration process. "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." Kuchinadas’ vision for Copper emphasizes the importance of adapting to changing market conditions.
Tokenized Money Market Funds
Copper has recently started offering clients secure custody and trading services for tokenized money market funds. This includes BlackRock’s BUIDL, a pioneering initiative in the digital asset space. By providing these services, Copper is meeting the growing demand for institutional-grade custody solutions in the crypto market.
The Future of Digital Asset Custody
Copper’s decision to withdraw from the FCA registration process reflects a broader trend in the industry. Companies are increasingly focused on expanding their global presence and adapting to changing regulatory environments. As the digital asset market continues to evolve, we can expect to see more companies like Copper taking bold steps towards growth.
Conclusion
The withdrawal of Copper’s application from the UK’s financial regulator marks a significant shift in the company’s strategy. With a focus on driving growth in priority markets, Copper is well-positioned to take advantage of emerging trends in the digital asset market. As the industry continues to evolve, companies will need to adapt and innovate to stay ahead of the curve.
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