Copper Technologies, a major player in the cryptocurrency sector, has decided to withdraw its application for a crypto license in the UK due to regulatory challenges.
The company, backed by Barclays, is now focusing on international markets, including Switzerland, Hong Kong, and Abu Dhabi, where there are clearer regulatory frameworks and more growth opportunities.
The Financial Conduct Authority (FCA) in the UK has imposed strict regulations on crypto businesses, resulting in a high rejection rate for license applications.
Copper's decision to withdraw is part of its strategic shift towards global expansion.
Despite this, the company remains committed to the UK market and plans to explore opportunities in the future.
The FCA's regulatory framework has led to a significant number of rejections for crypto firms, with 87% of applications either withdrawn, rejected, or refused.
Copper's withdrawal reflects a broader trend among cryptocurrency firms facing challenges with the FCA's requirements.
The company aims to position itself advantageously in the global crypto market by focusing on more accommodating jurisdictions.
While prioritizing international expansion, Copper still recognizes the potential for growth in the UK market and intends to maintain a presence and engage with the local crypto community.
As regulatory conditions evolve, the company may reconsider its approach to the UK and re-enter the licensing process when the environment becomes more favorable.