UK financial regulator hits BCB Group: company under FCA investigation, but investigation has already been closed!

Scandalous details: the chief compliance officer suddenly left BCB Group and will move to the crypto giant Kraken in November!

Cryptocurrency processing giant BCB Group has found itself at the center of a completed investigation by the UK financial watchdog #FCA , two sources familiar with the matter say. Late last year, the FCA issued the company a so-called s166 notice, which can signal possible violations or risks. However, the sources say the investigation ended positively for #BCB and the company is now in constructive talks to extend its license.

BCB Group CEO Oliver Tonkin said: “We always take a compliance-first approach and maintain an open dialogue with our regulators. We have a positive relationship with the FCA and have recently received the green light to expand our presence in the UK.”

The investigation comes amid global turmoil in the cryptocurrency banking sector following the collapse of several banks supporting digital assets in the United States. BCB Group is a key intermediary providing banking services to major cryptocurrency players such as Bitstamp, Crypto.com, Gemini, and Kraken.

It is not yet known what exactly prompted the s166 request, as it could relate to compliance or risk management issues. Such notices are not uncommon, with the FCA issuing around 50 such requests to firms each year.

Meanwhile, BCB's former chief compliance officer Natasha Powell has left the company and will join crypto exchange Kraken in November to head up its UK compliance team. However, Powell will retain her ties to BCB as a non-executive director of BCB Payments Ltd.

In addition, BCB Group recently received a takeover offer from an undisclosed investor in the context of its Series B funding round.

The heated world of cryptocurrencies and financial regulations continues to keep the market on edge, and the entire industry is watching developments at BCB Group.