UK didn’t Approve the Cryptocurrency Related with Philip Hammond
The former chancellor(Philip Hammond) might see his stakes value in Copper Technologies is suffering from dropping. And few days before, the company didn’t get the permission to run in UK, so it had to think about move to Switzerland.
Philip Hammond was employed by Copper Technologies as Senior Advisor last year. The guardians knows that Hammond gets growth shares, and the value of it might be high, such as 0.5% in the company. It means in the recent fundraising round, it values estimated $3bn.
The conservative person was the UK chancellor from July, 2016 to July 2019. And he advocated to hold the UK embracing digital assets. In the earlier this year, he said that UK was lack of building crypto regulatory frame. It is frankly shocking.
Copper is making effort to negotiate the existed old crypto regulatory frame and created a foundation plan. It means the value of Hammond’s stake might be in declining.
The Financial Conduct Authority(FCA) launched an act to searching for the digital assets’ controller. And also it asked the crypto company to apply for the registration. So the Crypto companies has to approve they got enough solutions to deal with the anti-money laundering.
The guardian institution already full approved 34 companies, and refused dozens that could not to reach the standards. The reason could be these companies don’t have enough power to see the danger of anti-money laundering or the don’t have effective methods to spread the danger flag!
There are 12 small companies besides Copper to listed in temporary registration sheet. It means they can still in trade before the final application conclusion out.
Although FCA already delayed the application deadline to the end of March, Copper is still the one of five companies that are on the temporary registration sheet.
FCA expressed that the company on the temporary registration sheet were making representations or they had particular winding-down plan. They understood the requirements of approval.
The copper said that there is $50bn notional money to flow to the basic constitutions. The copper told Guardian that the negotiation with FCA is still in processing.
However, heard from a person in the know, the Copper is looking for the substitution ways, such as moving to Switzerland. The movement required more than 500 customers register in Switzerland, with family fanancial offices,traders and the private banks.
The Copper expressed that the international expansion needs to built centers in different countries. It already had one agency in Zug, Switzerland.Hammond said in the early of this year, more and more crypto companies are planning to move to Switzerland, Monaco and Germany etc. ,because UK lacks of regulatory frame.
If the copper loses power in UK, it might affect them to get $30bn final target in fundraising, and also it will affect they get about $500m venture.
The crypto website, CoinDesk, reported in the early of this month, the potential investor Accel and Tiger Global thought about quit from the fundraising, because it is hard to get FCA approval.
And problems will affect the holding stock value of Hammond. From now on, Hammond’ holding is still in growth. Normally, if the company is sold, catch the standard of value or in the stock market, the holders can sell them to get cash, but they cannot get any dividends or they cannot vote in any company resolutions.
In fact, though a few crypto companies are hard to get the approvals from FCA, governments will make few solutions for them to make a optimism digital assets surrounding.
Rishi Sunak who is the successors to instead of Hammond hoped to make UK be the global center of crypto in the early of this month.
A spokesperson of FCA said that it was still trying to make company to reach the minimum standard of FCA. Those leaders of the companies are suitable ,and they had the right system to recognize and prevent the cash flow because of crimes.
They said that the methods were ready ,so our financial system would not be influenced by those who wanted to transport, hide the violence, drugs and corruption or exploitation of other people.
Also, they said that if they decided that the company could not fit for the registration standard, they would pointed out what the problem are for these unqualified compnaies. Anti-money regulatory does not include approving company to call back the application. Of course, in some special situations, they might approve a company calling back, stopping running until they would make all the adjustment to fit for the standard and re-apply.“If the company doesnot quit, it has to face the official adjudication. It can appeal through the court of law.” Hammond commented.