De Nederlandsche Bank fined Bybit $2.4 million for providing crypto services in the Netherlands without mandatory registration
De Nederlandsche Bank, the central bank of the Netherlands, has imposed a €2.2 million ($2.4 million) sanction on Bybit for providing crypto services in the country without the necessary registration, thereby violating regulations intended to combat money laundering and terrorist financing.
The sanction, which was imposed on Oct. 22, is the result of Bybit’s failure to register with DNB by the Anti-Money Laundering and Anti-Terrorist Financing Act. This act mandates that crypto service providers register to monitor and prevent illicit financial flows.
In May 2020, the registration requirement was implemented in response to the increased inherent risks of cryptocurrency transactions, particularly their potential for anonymity.
“[…] Bybit was unable to report unusual transactions to the Financial Intelligence Unit-Netherlands during the period of non-compliance.” – De Nederlandsche Bank
In addition to violating regulatory objectives, Bybit’s noncompliance also impeded the company’s capacity to report anomalous transactions, as per DNB.
DNB stated that the fine was calculated based on the severity, extent, and duration of Bybit’s noncompliance. However, the fine was reduced as a result of Bybit’s endeavors to resolve the situation.
The exchange has been operating under the SATOS Virtual Asset Service Provider license since the transfer of its Dutch consumers to the local partner SATOS B.V. firm.
Bybit acknowledged the sanction and reaffirmed its dedication to compliance in response to DNB’s statement. The exchange initiated Remediation efforts in 2022 to “minimize potential financial damage,” as stated in a press release.
Ben Zhou, the co-founder and CEO of Bybit, underscored the company’s commitment to “responsible growth,” stating that the exchange is “steadfast in its commitment to collaborating with European regulators to establish a transparent and responsible ecosystem.”
