BCB Group, a leading payments processor that facilitates connections between cryptocurrency firms and the traditional banking system, was recently under investigation by the Financial Conduct Authority (FCA) in the UK. The investigation, which has since been concluded, was initiated through a s166 notice issued to BCB Group late last year.
According to sources familiar with the matter, the FCA’s inquiry into BCB Group focused on various aspects of the company’s operations, including compliance with regulatory requirements, risk management processes, and financial stability. Despite the scrutiny, BCB Group’s CEO, Oliver Tonkin, emphasized the company’s commitment to a compliance-first approach and ongoing positive engagement with regulators.
Payments processors like BCB Group play a crucial role in the digital assets ecosystem, particularly in light of the closure of several crypto-friendly banks in the US last year. These companies provide essential banking services to major players in the digital asset sector, including popular exchanges such as Bitstamp, Crypto.com, Gemini, and Kraken.
Natasha Powell, the former chief compliance officer at BCB Group, recently resigned from her position and will be joining Kraken, a prominent cryptocurrency exchange, as head of UK compliance in November. Despite her departure, Powell will continue to support BCB Group as a non-executive director of BCB Payments Ltd., the company’s UK-regulated payments business.
In addition to the FCA investigation, BCB Group received a takeover approach from an undisclosed investor while considering a Series B funding round. The potential acquisition interest highlights the company’s growing presence in the digital assets space and its attractiveness to investors in the industry.
Overall, BCB Group’s experience with the FCA investigation is not uncommon, as the regulator issues approximately 50 s166 notices to companies in the UK each year. Despite the regulatory scrutiny, BCB Group remains focused on maintaining compliance and fostering positive relationships with regulators to support its continued growth and expansion in the digital assets market.