A cryptocurrency company that employs former chancellor Philip Hammond as an adviser has withdrawn its application to operate in the UK after struggling to win approval from the financial regulator.
The Guardian revealed earlier this year that Copper Technologies, in which Hammond holds a 0.5% stake, was considering registering in Switzerland rather than the UK.
The company has been temporarily registered by the Financial Conduct Authority (FCA) pending approval of the controls it has put in place to prevent money laundering and terrorist financing.
Fintech company Revolut, which was also placed on the FCA's provisional list, was granted full registration for its UK crypto business last month.
However, Copper Technologies revealed in accounts filed at Companies House that it had withdrawn its application and moved UK customers to Switzerland after gaining approval there.
Hammond, who was chancellor between July 2016 and July 2019, criticized the UK for failing to create a comprehensive regulatory framework for cryptocurrencies.
Earlier this year he said it was "frankly quite shocking" that Britain was lagging behind other countries.
The FCA's digital assets regime currently covers money laundering and terrorist financing, but not specific aspects of cryptocurrency trading and investing.
Hammond, who was hired by Copper Technologies as a "senior adviser" in 2021, has "growth shares" thought to be worth up to $15m (£13m), according to Bloomberg reports that the company was seeking a valuation in in the amount of 3 billion dollars. in a fundraising exercise.
Accounting shows that Copper Technologies has raised $196 million so far, but the ultimate fundraising success — and thus the valuation — could be affected by the broad global selloff in digital assets over the past year.
Meanwhile, losses at Copper, which provides digital currency infrastructure to other businesses, widened from £3.6m to £14.3m, accounts show.
A spokesperson for the company said: “Copper maintains an open and active dialogue with regulators across the jurisdictions where we operate, including of course the FCA. Since May, when we obtained membership of the [Swiss body] VQF, we are happy to be able to offer services to clients from Switzerland."
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