Bybit Fined $2.4 Million by Dutch Central Bank for Unregistered Crypto Services

Bybit Fined $2.4 Million by Dutch Central Bank for Unregistered Crypto Services

The Dutch central bank, De Nederlandsche Bank (DNB), has imposed a €2.2 million ($2.4 million) fine on cryptocurrency exchange Bybit for providing crypto services in the Netherlands without the required regulatory registration. The penalty, issued on October 22, highlights a breach of compliance with the Anti-Money Laundering and Anti-Terrorist Financing Act, a Dutch law requiring crypto service providers to register with DNB. This regulation, introduced in May 2020, is part of the country’s efforts to monitor and prevent illicit financial activities, especially those associated with the potential anonymity of crypto transactions.

DNB indicated that Bybit’s lack of registration undermined both regulatory goals and the exchange’s ability to report unusual transactions, a critical function designed to prevent money laundering. “Bybit was unable to report unusual transactions to the Financial Intelligence Unit-Netherlands during the period of non-compliance,” DNB stated, underlining the potential risks posed by unregistered service providers in the crypto sector.

The fine amount reflects factors such as the severity and duration of Bybit’s non-compliance; however, DNB opted to reduce the fine due to Bybit’s recent corrective actions. To address regulatory concerns, Bybit has transferred its Dutch clients to SATOS B.V., a local partner licensed as a Virtual Asset Service Provider, allowing the exchange to continue serving customers in the region through SATOS’ oversight.

In its response, Bybit acknowledged DNB’s action and affirmed its commitment to compliance. In a press release, Bybit highlighted remediation efforts initiated in 2022 aimed at reducing potential financial harm and ensuring compliance with European regulations. Bybit’s co-founder and CEO, Ben Zhou, stressed the company’s commitment to “responsible growth,” emphasizing that Bybit remains dedicated to building a transparent and compliant ecosystem in close collaboration with European regulatory bodies.