Copper Steps Back From U.K. Regulatory Path, Pivots Crypto Custody Strategy

Digital asset custodian Copper has decided to withdraw its application to register with the U.K.'s Financial Conduct Authority (FCA), marking a significant shift in the company’s strategic direction. The move reflects a broader pivot away from the domestic market toward more lucrative international expansion, according to recent statements from the firm’s leadership.

The London-based crypto custody provider said the decision to pull back from U.K. regulatory approval aligns with a newly charted business path that prioritizes global growth over local registration. This strategic realignment comes as the cryptocurrency industry faces mounting regulatory complexities in various jurisdictions, prompting custodians to reassess their geographic focus.

Strategic Pivot: Why Copper Chose International Markets Over U.K. Registration

The custody firm’s withdrawal signals a deliberate business choice rather than a regulatory setback. Copper, chaired by former U.K. Chancellor Philip Hammond, indicated that pursuing U.K. registration no longer fits its growth ambitions. Instead, the company is doubling down on expansion across priority regions including the United States, Europe, and the Middle East.

This shift became more evident following Copper’s appointment of Amar Kuchinad as global CEO in October 2024. Kuchinad, who previously advised the U.S. Securities and Exchange Commission, was tasked with orchestrating the firm’s international growth agenda and strengthening its footprint in American markets. His mandate underscores the company’s commitment to pursuing crypto custody opportunities beyond British shores.

Copper recently expanded its service offerings to include secure custody for tokenized money market funds, such as BlackRock’s BUIDL. This new product line positions the firm to capture emerging opportunities in the intersection of traditional finance and digital assets.

A Broader Trend: Why Crypto Companies Are Abandoning U.K. Registration

Copper is far from alone in stepping back from U.K. regulatory frameworks. According to FCA data spanning January 2020 through December 2024, a striking 69% of applications for cryptoasset institution registration were withdrawn during this period. This pattern reveals how challenging—and perhaps increasingly unnecessary—pursuing formal U.K. registration has become for digital asset firms prioritizing global reach.

The high withdrawal rate suggests that many crypto companies view U.K. registration as a potential constraint rather than a competitive advantage, especially when international markets offer more favorable conditions for growth. For custody providers like Copper, the calculation appears straightforward: redirect resources toward markets with stronger institutional demand and clearer regulatory pathways.

Market Positioning: Copper’s International Growth Trajectory

By exiting the U.K. registration queue, Copper positions itself to move more aggressively into its core target markets. The company’s emphasis on the U.S., European, and Middle Eastern markets reflects where institutional adoption of digital asset solutions is accelerating most rapidly. These regions offer both established financial infrastructure and growing appetite for professional-grade crypto custody services.

The refocus on international opportunities suggests that the U.K., while historically important for fintech innovation, may no longer represent the primary growth engine for specialized crypto service providers. For companies like Copper that operate at the intersection of institutional finance and digital assets, following capital flows and regulatory clarity appears to trump maintaining domestic regulatory status.

This strategic recalibration demonstrates how quickly the priorities of leading crypto firms are shifting in response to global market dynamics and evolving regulatory landscapes.