From cointelegraph by Helen Partz

Update Dec. 20, 10:40 am UTC: This article has been updated to include exclusive interview comments from Copper.

Copper Technologies, a cryptocurrency custody firm backed by British multinational bank Barclays, has withdrawn its crypto license application in the United Kingdom.

Copper withdrew its application to register with the UK’s Financial Conduct Authority on Dec. 20, saying it will shift focus to foreign hubs under its new CEO, the firm confirmed to Cointelegraph on Friday.

Chaired by former UK Chancellor of the Exchequer Philip Hammond, Copper is one of the largest crypto businesses in the UK and has reportedly received millions in investment from Barclays.

Copper’s former CEO Dmitry Tokarev — who started the business in 2018 — stepped down in October, with banking veteran Amar Kuchinad taking over as global CEO.

Copper failed to secure a UK registration in 2022

Copper reportedly failed to secure a permanent UK registration when the FCA updated its register of crypto asset businesses in 2022.

Since then, Copper has been shifting its focus overseas, prioritizing regulatory approvals and licenses in Switzerland, Hong Kong and Abu Dhabi.

Strengthening Copper’s presence in the United States, in addition to growth in Hong Kong and Abu Dhabi, was announced as central to the company’s global expansion approach in October 2022.

“Refining Copper’s global growth strategy has been my priority since joining, and this has necessitated key decisions on our direction and approach,” Kuchinad said in a statement on Copper’s UK license application withdrawal.

Europe, the US and the Middle East remain Copper’s priority markets

“Withdrawing our application to register as a crypto asset institution in the UK is the right decision for our business and reflects our refocus on driving growth in priority markets and the expansion of our product portfolio,” he stated.

Despite the withdrawal, Copper continues to see Europe as one of its key markets alongside the US and the Middle East, Kuchinad noted, adding:

“We remain committed to the UK, which has been, and will continue to be a central part of the Copper story.”

Nearly 90% of FCA crypto registrations have failed in 2024

Copper’s FCA license withdrawal comes soon after the FCA reported that nearly 90% of crypto license applicants failed to meet its standards as of September 2024.

“Over 87% of crypto registrations were withdrawn, rejected or refused for weak money laundering controls,” the FCA said in its 2024 annual report issued on Sept. 5.

Related: FCA releases discussion paper on crypto market transparency, abuse

The regulator said it only approved four out of 35 applications for cryptocurrency firm registration in the past year, with 15 applications withdrawn and nine rejected.

“We have rejected submissions that didn’t include key components necessary for us to carry out an assessment, or the poor quality of key components meant the submission was invalid,” the regulator noted.