Crypto Payments Firm BCB Group Was the Subject of an FCA Investigation: Sources

In response to sources, BCB Group was the topic of a now closed investigation by the FCA.

The corporate’s Chief Compliance Officer not too long ago resigned from the corporate and can be a part of crypto trade Kraken in November.

BCB Group, a cost processor that hyperlinks cryptocurrency firms to the banking system, was the topic of a now-closed investigation by Britain’s monetary companies regulator, in line with two individuals with information of the matter.

The Monetary Conduct Authority, or FCA, issued BCB with a so-called s166 discover late final 12 months, mentioned the individuals, who spoke on situation of anonymity as a result of the matter is personal. The investigation has now been accomplished in a fashion that, in line with a supply near BCB, was optimistic for the corporate. BCB is in constructive discussions with the regulator about increasing the allow, in line with a 3rd particular person.

“BCB Group has all the time taken and continues to take a compliance-first strategy to its enterprise actions,” mentioned Oliver Tonkin, CEO of BCB, in an emailed remark. “We now have common open and clear dialogue with all our regulators inside our licensed companies and from our perspective we’re in good standing with all of them. Our engagement with the FCA stays optimistic and we’ve got not too long ago been given the inexperienced mild to broaden our enterprise regulatory footprint in Britain, ought to we want,” he added.

The FCA declined to remark.

Funds firms like BCB are vital intermediaries within the digital asset ecosystem, particularly after the collapse of various crypto-friendly banks within the US final 12 months. They supply financial institution rails to a number of the largest establishments within the digital asset business, together with exchanges similar to Bitstamp, Crypto.com, Gemini, and Kraken.

It isn’t clear what sort of investigation BCB needed to cope with. An s166 ranking will be triggered by the FCA for various causes. There could also be issues about an organization’s authorized necessities and whether or not it adheres to particular laws. The regulator could possibly be involved about doable misconduct. The supervisory physique may have issues about an organization’s threat administration processes and its monetary stability. If the FCA suspects market abuse or misconduct, it may additionally launch an investigation.

BCB shouldn’t be a novel case, because the FCA points round 50 of those notices to companies within the UK yearly.

Natasha Powell, the previous Chief Compliance Officer at BCB, not too long ago resigned from the corporate, as reported by CoinDesk. She is going to be a part of crypto trade Kraken in November as head of UK compliance.

Powell will preserve ties with BCB, and can proceed to assist the group as a non-executive director of BCB Funds Ltd., the UK regulated funds enterprise.

The cost processor not too long ago acquired a takeover strategy from an unidentified investor, CoinDesk revealed final month. The curiosity in a buyout was initiated by the potential purchaser whereas BCB was exploring a Sequence B financing spherical, individuals accustomed to the matter mentioned.