Lord Philip Hammond is a political heavyweight — someone who held senior roles at the top of the British government for nine years. That included three years as chancellor (finance minister), where he would set out the country’s budget.
He’s also proven to be a staunch advocate for the crypto industry, and has long argued that the U.K. should lead the way in terms of regulation — especially given how it could offer new revenue streams for the economy after Brexit.
Hammond doubled down on this by becoming the chairman of Copper, a digital assets firm mainly focused on institutional investors, in 2023. His reputation and experience were undoubtedly a coup for the company.
But now, respected Sky News City editor Mark Kleinman has revealed that Hammond will soon be leaving the role altogether, with Copper “reorienting its growth plans away from the U.K. to the U.S. markets.”
This is a significant development on multiple fronts. For one, it means that Copper — and the crypto world more widely — is losing a credible name. It’s also the latest sign that Britain is lagging behind other economies when it comes to digital assets.
Copper has made no secret of its frustration as it attempted to gain a foothold in the U.K. The company had been hoping to gain secure regulatory approval from the Financial Conduct Authority, but later decided to withdraw its application.
It had been trying for three years to be given the green light, but persistent roadblocks meant it instead had to look to other markets — registering in Switzerland instead and being given the green light to operate in Abu Dhabi.
The timing is unfortunate to say the least. Ever since Bitcoin ETFs made their debut on Wall Street in January 2024, there has been insatiable demand for digital assets among institutional investors.
Copper’s ambition has long been to provide services that help hedge funds, venture capital firms and deep-pocketed individuals gain exposure to crypto in a secure and compliant way.
Yet despite the recent boom in crypto prices, the company has been struggling to achieve profitability. Net losses totaled $84.1 million in 2022 and narrowed to $62.1 million in 2023, with numbers for 2024 yet to be filed with Companies House.
Another unwelcome piece of publicity came in March last year, when it emerged that guests at an event hosted by Copper at a five-star hotel were served sushi from the bodies of two partially naked models.
Photos were later obtained by the Financial Times, with a source close to the company telling the newspaper that the incident was “more performative art than anything seedy” — and Hammond wasn’t in attendance.
Two days later, the company admitted in a statement that the incident has been “embarrassing” and its executives had missed the mark.
“We recognise that certain aspects of the event have caused offence and do not reflect Copper’s corporate values.”
Copper went on to confirm that it planned to perform an internal review into how it organizes events, with the incident shedding an unwelcome light on the excesses of the crypto industry — especially during bull markets.
But back to the situation with Lord Hammond. Mark Kleinman’s reports suggest he will remain a shareholder in Copper — and yep, you guessed it, “an experienced American finance executive” will replace him by the end of this year.
Decentralization is a key tenet of the digital assets space, eliminating a single point of failure that means everything can come crashing down in the blink of an eye. Unfortunately, that’s kind of what we’re starting to see in this industry. Donald Trump’s arrival in the White House means there’s a slew of crypto firms now racing to set up shop in the U.S. — either by headquartering there or throwing a box office initial public offering on the stock market.
This could cause headaches for the sector later on. What if the Republicans fail to win the next presidential election, with a Democrat who’s less enthusiastic about crypto taking their place? An aggressive regulatory clampdown years down the track could lead to a plethora of hasty relocations to friendlier jurisdictions.
The U.K. is falling behind, and needs to step up efforts to attract crypto firms. Hammond’s departure from Copper is a sign that his experience, contacts book and influence has failed to open the necessary doors in this country.
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