Crypto Custodian Copper Abandons UK Licensing Plans, Shifts Focus to US and Global Expansion
Copper Technologies, a cryptocurrency custody firm backed by Barclays, recently made the decision to scale back its efforts to secure an operating license in the United Kingdom. Instead, the London-based company will shift its focus to expanding to other global hubs, even though it remains one of the largest crypto-based businesses in the UK.
The change in strategy comes with a new CEO at the helm. Amar Kuchinad, who took over the role in October after the former CEO Dmitry Tokarev stepped down, is leading the charge to refine the company’s global growth strategy. This shift in direction involves key decisions to shape Copper’s approach moving forward. Kuchinad, with a background as a managing director at Goldman Sachs and a senior policy advisor with the SEC, is driving this new chapter for the firm.
One of the key moves under Kuchinad’s leadership is focusing on ClearLoop, Copper’s off-exchange settlement solution, and strengthening the company’s foothold in the US market. Plans are in place to pursue regulatory custodial or money-transmitter licenses in the US, as well as operational licenses in Switzerland, Hong Kong, and Abu Dhabi, emphasizing an “institutional first” approach.
Established in 2018, Copper provides institutional investors with exposure to the cryptocurrency market through secure custody solutions, trading infrastructure, and settlement services. Although the firm faced setbacks in securing permanent registration with the FCA in 2022, it continues to expand its offerings. Most recently, Copper added support for the USDC stablecoin on the Sui blockchain, demonstrating its commitment to integrating digital assets.
In the UK, Copper’s decision to withdraw its application to the FCA due to stringent licensing standards is not uncommon. The regulator reported that many crypto firms have implemented poor anti-money laundering measures, resulting in a low approval rate for applications. In response, the FCA proposed stricter rules for admission and disclosure to enhance market integrity and reduce the risk of market manipulation in the crypto sector. This aligns with the UK government’s efforts to increase transparency in the crypto space, exemplified by the Bank of England’s mandate for businesses holding or planning to hold crypto assets to report their exposure to regulatory authorities.
Copper’s shift in focus reflects the evolving landscape of the cryptocurrency industry, where regulatory compliance and transparency play significant roles in shaping the future of digital assets. With a new direction guided by Kuchinad’s leadership, Copper is positioning itself for growth and success in global markets beyond the UK.
