Copper Technologies – a crypto firm that employs former United Kingdom Chancellor Philip Hammond as its adviser – has encountered some difficulties whilst trying to operate in its home country. As a result, the company has withdrawn its application to expand in the UK.
Copper Technologies Is Leaving the UK
Copper had trouble when gaining approval from the financial regulator, which as we all know by now, is not particularly keen on crypto. The agency – known as the Financial Conduct Authority (FCA) – has stated in the past that all crypto-based ATMs are illegal within the UK. It was also no stranger to attacking and fining celebrity Kim Kardashian for her Instagram post talking about the new cryptocurrency Ethereum Max.
At the time of writing, it appears Copper Technologies is now looking to establish residency and business dealings in the European country of Switzerland, which is at the opposite end of the spectrum when compared to the UK. While the latter is known for coming down hard on crypto and its respective traders and businesses, Switzerland has very open and friendly laws in place when it comes to digital asset enterprises.
The nation even has what’s known as “Crypto Valley,” a take on the Silicon Valley name in northern California. The latter houses some of the world’s largest tech firms from Google to Facebook to Apple, while Crypto Valley houses a wide array of crypto and blockchain startups. In addition, the towns of Zug and Lugano in Switzerland have incorporated bitcoin and crypto payment methods heavily into their operations and business procedures, so maybe Copper has its head in the right place.
A spokesperson for the firm stated:
Copper maintains open and active dialogue with regulators across the jurisdictions where we are operating, including of course with the FCA. Since gaining our membership to [Swiss body] VQF in May, we are pleased to be able to offer clients services from Switzerland.
Despite being a harsh force to deal with, the FCA is somewhat unpredictable. One never knows who will get its approval and who will be kicked to the curb. For example, while being harsh with firms like Copper Technologies, the agency was quick to provide approval to crypto companies like fintech giant Revolut. One never knows in which direction the FCA is going to steer, and this also makes it difficult for crypto companies seeking residence in the UK.
The FCA Is Rough to Deal With
The FCA has repeatedly warned against investing in crypto and related assets, claiming their volatility and the overall speculation surrounding them makes them dangerous. In a statement, the FCA said:
We regularly warn consumers that crypto assets are unregulated and high-risk, which means people are very unlikely to have any protection if things go wrong, so people should be prepared to lose all their money.