Copper Technologies, a cryptocurrency firm that employs former chancellor Phillip Hammond, has withdrawn its application to operate in the UK.
Hammond, who was chancellor from 2016 to 2019, owns a 0.5% stake in Copper and is employed as an adviser at the crypto firm.
Copper though has struggled to get approval even with his help.
In accounts filed at Companies House, Copper confirmed it was moving its UK customer accounts to Switzerland after receiving approval there.
“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,” a Copper spokesperson told The Guardian.
The Financial Conduct Authority (FCA) gave Copper temporary registration pending approvals of the controls it had put in place to prevent money laundering and terrorist financing.
Fintech Revolut, which was valued at US$33bn last year, was given a similar temporary registration before its crypto business was granted full status last month.
Hammond, who was appointed by Copper last year, has been vocal in his disapproval of Britain’s crypto regulatory framework, describing it as “frankly quite shocking.”