The U.K. financial services regulator issued the payments provider a s166 notice late last year. The inquiry is now closed.

BCB Group, a payments processor that links cryptocurrency firms to the banking system, was the subject of a now-closed investigation by the U.K. financial services regulator, according to two people with knowledge of the matter.

The Financial Conduct Authority, or FCA, gave BCB a so-called s166 notice late last year, the people said, who spoke on condition of anonymity as the matter is private. The investigation has since been concluded in a way a source close to BCB deemed positive for the company. BCB is in constructive talks with the regulator about expanding its licence, a third person added.

“BCB Group has at all times operated a compliance first approach in its business activities and continues to do so,” said Oliver Tonkin, CEO of BCB, in emailed comments. “We have regular open and transparent dialogue with all our regulators across our licenced businesses and from our perspective we are in good standing with them all. Our engagement with the FCA continues to be positive and we have recently been given the green light to expand our regulatory footprint in the UK should we wish to do so,” he added.

The FCA declined to comment.

Payments companies like BCB are important intermediaries in the digital assets ecosystem, moreso following the collapse of a number of crypto-friendly banks in the U.S. last year. They provide banking rails to some of the biggest institutions in the digital-asset sector, including exchanges such as Bitstamp, Crypto.com, Gemini and Kraken.

It’s not clear what sort of inquiry BCB faced. A s166 review can be triggered by the FCA for a number of reasons. There may be concerns about a company’s regulatory requirements, and whether it is complying with specific rules. The regulator could be worried about potential misconduct issues. The supervisory body may also have concerns about a firm’s risk management processes and its financial stability. If the FCA suspects market abuse or misconduct, it can also launch an investigation.

BCB is not a unique case, as the FCA issues about 50 of these notices to companies in the U.K. every year.

Natasha Powell, the former chief compliance officer at BCB, recently resigned from the business, as reported by CoinDesk. She will be joining crypto exchange Kraken as head of U.K. compliance in November.

Powell will still retain links with BCB, and will continue to support the group as a non-executive director of BCB Payments Ltd., its U.K.-regulated payments business.

The payments processor recently received a takeover approach from an unidentified investor, CoinDesk revealed last month. The buyout interest was initiated by the potential acquirer while BCB was exploring a Series B funding round, according to people familiar with the matter.

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The firms’ clients will have access to comprehensive trade lifecycle services.

Digital assets trading platform Talos will work with crypto payment services provider BCB Group to provide clients of both firms with access to a suite of front-, middle- and back-office trading services, the companies said in a statement Wednesday.

BCB, based in London, is a banking partner for investors in foreign exchange and crypto, allowing them to load fiat currency and cryptocurrencies for payments, operations and trading purposes. Talos’ end-to-end trading platform offers market connectivity, smart order routing and execution algorithms.

Talos raised $105 million in a Series B funding round last May, with investments from financial services giants Citigroup (C), Wells Fargo (WFC) and BNY Mellon (BK). The fundraising round gave the company a $1.25 billion valuation.

It announced three key hires in September as part of its global expansion, with Frank van Zegveld joining the firm as head of sales for the Europe, Middle East and Africa region.

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