BCB Group, a payments processor that links crypto firms to the banking system, has received a takeover approach from an investor, according to three people familiar with the matter.

The buyout interest was initiated by the potential acquirer while the London-based company was exploring a Series B funding round, said the people, who spoke on condition of anonymity because the matter is private.

The business is not formally up for sale, and there are no negotiations taking place, one of the people said.

BCB declined to comment.

M&A activity in the U.K. crypto industry has been heating up in recent months. Elwood Technologies, the crypto-focused trade execution and risk management platform backed by billionaire hedge fund manager Alan Howard, divested its over-the-counter trading division to Standard Chartered-backed Zodia Markets in July.

BCB closed a $60 million Series A funding round in January 2022. The round was co-led by Foundation Capital with participation from BACKED VC, PayU (the e-payments business of Prosus), Digital Currency Group, Nexo, Wintermute, Menai Financial Group, Circle, Tokentus Investment, Cowa, Profluent Ventures and LAUNCHub Ventures.

Previous investors North Island Ventures, Blockchain.com Ventures, Rockaway Blockchain Fund, Pantera and L1 Digital also participated in the Series A round.

The payments firm was authorized by France's ACPR and AMF, the country's two primary financial regulators, to act as an Electronic Money Institution (EMI) and Digital Assets Services Provider (DASP) in April. It said France will serve as its regulatory base in Europe.

BCB's former CEO , Oliver von Landsberg-Sadie, left the company in November to pursue new opportunities and was replaced by Oliver Tonkin. His departure came just five months after Deputy CEO Noah Sharp decided to exit the business after the failed acquisition of Sutor Bank in Germany.