BCB Group, the payments processor that connects crypto companies in the UK to the banking system, has said that an investigation launched by the UK’s financial services regulator last year has now closed. According to two sources familiar with the matter, the Financial Conduct Authority (FCA) has sent BCB a “s166 notice” due by the end of 2023. The investigation has concluded in what a source close to BCB described as a positive outcome.

BCB Aims to Expand License

BCB is currently in constructive discussions with the FCA with a view to extending its licence. Another source familiar with the matter said the process was progressing positively. “BCB Group has always taken a compliance-focused approach to all its business activities and continues to do so. We have a transparent dialogue with our regulators across all our licensed businesses and have a positive relationship with the FCA. We have been granted permission to expand our regulatory structure in the UK, as requested,” BCB Group CEO Oliver Tonkin said in an emailed statement.

BCB provides banking services to the largest institutions in the crypto space. The importance of such payment companies has increased after the collapse of crypto-friendly banks in the US last year. Among the crypto exchanges that BCB serves are big players like Bitstamp, Crypto.com, Gemini and Kraken.

Type of Investigation Uncertain

While it is not clear what type of investigation the BCB is undertaking, it is known that the FCA issues s166 notices to around 50 companies each year. Such investigations are carried out because of concerns about whether a company is meeting regulatory requirements. The FCA can also launch investigations if there are suspicions of potential market abuse or irregularities.

On the other hand, it was reported that former BCB Group compliance officer Natasha Powell recently left her position and will start working as the UK compliance head of the Kraken exchange in November. Powell will continue her connection with BCB as an independent board member at BCB Payments.

BCB Group has been in the news for the past few months after receiving a takeover offer from an unnamed investor. This interest emerged as the company was seeking a Series B investment round.