In a major strategic shift, leading crypto custody firm Copper has withdrawn its application for registration with the UK’s Financial Conduct Authority (FCA). The move signals Copper’s pivot towards global expansion, as it refocuses efforts on key markets like the US, Europe, and the Middle East.
Copper Exits FCA Registration Process
Founded in 2018, Copper has established itself as a premier provider of secure custody and trading solutions for digital assets. The London-based company’s decision to withdraw from the FCA registration process comes as a surprise to many in the industry.
In a statement released Friday, Copper explained that FCA registration no longer aligns with its future business trajectory. The firm emphasized that this strategic shift reflects its commitment to capitalizing on opportunities in priority global markets.
“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 Kuchinad, Copper’s newly appointed Global CEO.
Focusing on Global Opportunities
Copper’s withdrawal from the FCA process underscores the regulatory challenges faced by crypto businesses seeking to operate in the UK. Data from the FCA reveals that between January 2020 and December 2024, a staggering 69% of crypto firm applications were withdrawn.
Rather than navigating the complex UK regulatory landscape, Copper has chosen to concentrate its resources on more crypto-friendly jurisdictions. The company sees immense potential in the rapidly evolving digital asset markets of the US, Europe, and the Middle East.
Strengthening US Presence
Central to Copper’s global strategy is bolstering its foothold in the United States. In October, the firm appointed Amar Kuchinad as its new Global CEO, tasking him with spearheading Copper’s international growth initiatives.
Under Kuchinad’s leadership, Copper aims to capitalize on the burgeoning institutional appetite for crypto investments in the US. By providing robust custody infrastructure and services, the company hopes to become a trusted partner for American institutions navigating the digital asset space.
Expanding Product Offerings
In addition to its geographic expansion, Copper is also diversifying its product suite to cater to the evolving needs of institutional clients. The firm recently began offering secure custody and trading of tokenized money market funds, such as BlackRock’s BUIDL.
“We’re excited to support the growing demand for tokenized traditional assets,” Kuchinad stated in October. “By providing custody services for instruments like BUIDL, we’re bridging the gap between the traditional finance and crypto ecosystems.”
The Future of Institutional Crypto Custody
Copper’s strategic maneuvers reflect the dynamic and competitive landscape of institutional crypto custody. As digital assets continue to gain mainstream acceptance, custody providers must adapt to the unique regulatory and operational challenges of different jurisdictions.
By focusing on markets with clearer regulatory frameworks and strong institutional demand, Copper is positioning itself for long-term success. The company’s global expansion and product diversification demonstrate its commitment to remaining at the forefront of the rapidly evolving crypto custody space.
As Copper embarks on this new chapter, its progress will be closely watched by industry observers and institutional investors alike. The firm’s ability to navigate the complex global crypto landscape will serve as a bellwether for the future of institutional digital asset adoption.
Conclusion
Copper’s decision to withdraw its FCA registration application and focus on international expansion marks a significant shift in the crypto custody landscape. By prioritizing jurisdictions with clearer regulatory environments and strong institutional demand, Copper aims to solidify its position as a leading provider of secure, compliant, and innovative custody solutions.
As the crypto industry continues to mature, the success of firms like Copper will play a crucial role in shaping the future of institutional digital asset investment. Their strategic moves offer valuable insights into the evolving priorities and challenges faced by custody providers in an increasingly global and competitive market.
