Bybit Fined $2.4M by Dutch Bank for Unregistered Crypto Services

De Nederlandsche Bank fined Bybit $2.4m for offering crypto services in the Netherlands without mandatory registration.

Bybit Fined for Non-Compliance with Dutch Regulations

The Netherlands’ central bank, De Nederlandsche Bank, has fined Bybit €2.2 million ($2.4 million) for offering crypto services in the country without the required registration. This breach of regulations is designed to combat money laundering and terrorist financing.

The fine, issued on Oct. 22, stems from Bybit’s failure to register with DNB as mandated by the Anti-Money Laundering and Anti-Terrorist Financing Act. This act requires crypto service providers to register to help monitor and prevent illicit financial flows. The registration requirement was introduced in May 2020 due to the heightened risks associated with crypto transactions, particularly their potential for anonymity.

According to DNB, Bybit’s non-compliance not only contravened regulatory objectives but also hindered the company’s ability to report unusual transactions.

Bybit was unable to report unusual transactions to the Financial Intelligence Unit-Netherlands during the period of non-compliance.

Severity and Remediation Efforts

DNB determined the fine considering the severity, extent, and duration of Bybit’s non-compliance. However, the fine was reduced due to the company’s efforts to rectify the situation. The exchange transferred its Dutch customers to local partner SATOS B.V. and has since operated under the SATOS Virtual Asset Service Provider license.

In response to DNB’s statement, Bybit acknowledged the fine and reiterated its commitment to compliance. In a press release, the exchange highlighted that it initiated remediation efforts in 2022 to minimize potential financial damage. Ben Zhou, Bybit co-founder and chief executive, emphasized the company’s dedication to responsible growth, stating the exchange remains committed to working closely with European regulators to build a responsible and transparent ecosystem.

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