BCB Group, a key payment processor connecting crypto companies with the banking system in the UK, has been cleared in a regulatory investigation initiated by the Financial Conduct Authority (FCA) last year. According to two sources familiar with the matter, the FCA issued a “s166 notice” to BCB at the end of 2023. The investigation has now concluded, with one source close to BCB viewing the outcome as positive.
BCB Aims to Expand Its License with FCA
BCB is currently in constructive talks with the FCA to expand its regulatory license. A second source indicated that these discussions are progressing favorably. BCB Group’s CEO, Oliver Tonkin, stated via email, “BCB Group has always adopted a compliance-focused approach in all business activities and will continue to do so. We maintain transparent dialogue with our regulators across all licensed business units and have a positive relationship with the FCA. We have now received permission to expand our regulatory framework in the UK as requested.”
BCB provides banking services to some of the largest institutions in the crypto industry. Following the collapse of crypto-friendly banks in the U.S. last year, the importance of payment firms like BCB has only increased. Major crypto exchanges such as Bitstamp, Crypto.com, Gemini, and Kraken are among the company’s clients.
Nature of the Investigation Unclear
Although it’s unclear what type of investigation BCB was subjected to, it’s known that the FCA issues approximately 50 s166 notices each year. These reviews are typically conducted when there are concerns about a company’s compliance with regulatory requirements. The FCA can also initiate investigations if there is suspicion of market misconduct or irregularities.
Meanwhile, BCB’s former Chief Compliance Officer, Natasha Powell, recently left her position and will join Kraken as the UK Head of Compliance in November. Powell will remain connected to BCB as an independent board member at BCB Payments.
In addition, BCB Group recently made headlines after receiving a takeover offer from an anonymous investor during its search for Series B funding. This interest further highlights the growing value of BCB in the crypto-banking space.
BCB Group, FCA, crypto banking, regulatory compliance, crypto exchanges
