Lord Philip Hammond will soon step down as chairman of Copper, the digital assets firm he joined in 2023, after Sky News City editor Mark Kleinman reported that the company is reorienting its growth away from the UK and toward the US.
Hammond served in senior UK government roles for 9 years, including 3 years as chancellor, and had pushed for Britain to lead on crypto rules.
Background
Copper’s move follows a three-year struggle to secure regulatory approval in the UK and the firm’s decision to register in Switzerland and gain clearance to operate in Abu Dhabi.
The shift aims to tap booming institutional demand for crypto while avoiding the delays and barriers it faced at home.
Hammond’s name lent weight to Copper when he became chairman. He has long argued the UK should set the rules for digital assets. The company hoped his experience and contacts would smooth its path to approval by the Financial Conduct Authority.
Copper had spent 3 years trying to win FCA approval. Persistent roadblocks forced the company to withdraw its UK application. It then registered in Switzerland and got permission to work in Abu Dhabi. That path underlines the hurdles firms face when seeking a foothold in Britain.
Why Copper is leaving the UK?
The company says it wants faster access to large markets, and the US has seen a surge in institutional interest since Bitcoin ETFs hit Wall Street in January 2024. That demand has encouraged exchanges, asset managers and service providers to chase US business.
Copper also faced regulatory delays that stalled its plans. Executives grew frustrated. Reports say bidders and board members saw few signs the firm could move quickly under UK rules.
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Faced with that reality, Copper chose to retool its strategy and target markets viewed as more open or faster-moving.
Financial pressure and PR missteps
Copper has been clear that profitability has been a challenge. The firm posted net losses of $84.1 million in 2022 and $62.1 million in 2023.
Figures for 2024 have not yet been filed at Companies House. Those losses add pressure to find new revenues and to scale where demand is strongest.
The company also suffered a public relations hit in March last year. Guests at a Copper event were served sushi from the bodies of partially nude models, and photos were published by media outlets, according to reports
Copper called the stunt “embarrassing” and said some parts of the event offended him. The company said it would review how it stages future events. Hammond was not at that gathering.
Leadership change and wider signals
Mark Kleinman’s reporting suggests Hammond will stay a shareholder. It also indicates that an experienced American finance executive will take his place by the end of this year.
That signals a clear pivot, and that is, Copper wants leadership that can push a US-focused plan. The departure of a high-profile British figure is significant beyond one firm.
It feeds a wider debate about whether the UK is losing ground as a crypto hub. Supporters of stronger UK rules argue the country must move faster to attract and keep talent and capital.
Political and market context
The crypto world is in flux. The user base and capital are following policy signals and market openings. The arrival of Donald Trump in the White House has led some firms to set up or expand in the US. That may be short-lived if political winds change, but for now, it is a strong pull factor.
The risk is that companies may hop from one jurisdiction to another as rules shift. That creates instability for regulators and for industry players who prefer clear, long-term frameworks.
What it means for the UK?
Copper’s shift and Hammond’s exit are a warning sign. They suggest that high-profile backing by itself may not be enough to overcome regulatory friction.
If the UK wants to be a centre for crypto services, it will need clearer, faster pathways to approval and better engagement with firms seeking to operate there.
Lord Hammond’s move away from an active role at Copper highlights the gap between political will and practical outcomes.
For now, it has chosen to follow demand and favourable market conditions rather than wait for a slower path at home. The wider question is whether Britain will act to keep such firms or watch them seek growth elsewhere.
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