Crypto Firm BCB Group Cleared in FCA Probe, Makes Plans to Expand UK Regulatory Licence

The UK Financial Conduct Authority (FCA) has closed its investigation into BCB Group, a leading European-based crypto payment services provider.

Last year, the FCA issued the firm a s166 (a skilled person review that evaluates a firm's financial integrity, technical capability, conflict of interest, etc.) notice.

Two sources familiar with the situation confirmed the inquiry, which is now closed. They spoke anonymously because the matter was sensitive.

BCB Group Eyes Regulatory Expansion After Positive FCA Review

The FCA issued BCB an s166 notice late last year. This type of notice typically requests information and indicates that a firm is scrutinized for compliance issues.

However, the investigation has concluded with a positive outcome for the company.

BCB is now in talks with the FCA to expand its regulatory license. This development suggests that the company is positioning itself to enhance its operations in the UK.

It aims to integrate further into the financial services landscape, especially as the relationship between traditional banking and the cryptocurrency sector evolves.

BCB Group has always maintained a compliance-first approach in its business activities. This commitment continues to be a cornerstone of our operations," said Oliver Tonkin, the CEO of BCB, in comments sent via email.

He emphasized that the company engages in regular, open, and transparent dialogue with all its regulators across its licensed businesses. From our perspective, we are in good standing with them all," he stated.

Tonkin noted that the engagement with the FCA remains positive. Recently, BCB received the green light to expand its regulatory footprint in the UK. He added that the firm is very optimistic about the future. However, the FCA made no comments on this matter.

Amid Crypto Banking Challenges, BCB Group Draws Investor Interest

Payments companies like BCB play a vital role as intermediaries in the digital assets ecosystem. This is especially true in light of the collapse of several crypto-friendly banks in the US last year.

BCB provides essential banking services to some of the largest institutions in the digital asset sector. Its clients include well-known exchanges such as Bitstamp, Crypto.com, Gemini, and Kraken.

It connects these crypto firms to banking systems to facilitate fiat-to-crypto transactions. BCB helps stabilize the digital asset market and enhance its credibility by enabling these connections.

The specific nature of the FCA's inquiry into BCB remains unclear. The FCA can initiate a s1166 review for various reasons. One common trigger is concern over a company's compliance with regulatory requirements.

The FCA may question whether a firm is adhering to specific rules. Additionally, the regulator might have been concerned over potential misconduct issues. This could relate to ethical practices within the company. Another concern could involve a firm's risk management processes and financial stability.

Meanwhile, in a related development, Natasha Powell, the former chief compliance officer at BCB, has recently resigned. Powell will take on a new role as head of UK compliance at cryptocurrency exchange Kraken in November.

After her departure, Natasha Powell will still be tied to BCB. She will be a non-executive director of BCB Payments Ltd., the U.K.-regulated payments business. Leveraging her compliance expertise, she will provide valuable support and guidance in this role.

Recently, BCB caught the attention of investors. A previous report revealed the payment processor received a takeover proposal from an unidentified investor.

This interest came while BCB was also exploring a series B funding round. Sources familiar with the matter indicated that the potential acquirer initiated contact during this fundraising effort.

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