Dutch central bank Imposes $2.4m fine on Bybit for service violations

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

Dutch central bank De Nederlandsche Bank fined Bybit 2.2 million euros ($2.4 million) for offering crypto services in the country without the required registration and violating regulations designed to combat money laundering and terrorist financing.

The penalty, imposed on October 22, stems from Bybit’s failure to register with DNB under the Anti-Money Laundering and Counter-Terrorist Financing Act, which requires crypto service providers to register to help monitor and prevent illicit financial flows. The registration requirement was introduced in May 2020 in response to the increasing risks associated with crypto transactions, particularly the potential for anonymity.

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

“[…] Bybit failed to report unusual transactions to the Dutch Financial Intelligence Unit during the non-compliance period.”

De Nederlandsche Bank

DNB said it determined the penalty by taking into account the severity, scope and duration of Bybit’s non-compliance, but the penalty was reduced due to the company’s efforts to rectify the situation. The exchange transferred its Dutch clients to local partner firm SATOS BV and has been operating under the SATOS Virtual Asset Service Provider license ever since.

In response to DNB’s statement, Bybit accepted the penalty and reiterated its commitment to comply with the rules. In a press release, the exchange emphasized that it has initiated remediation efforts in 2022 to “minimize potential financial harm.” Bybit co-founder and CEO Ben Zhou emphasized the company’s commitment to “responsible growth” and said the exchange was “committed to working closely with European regulators to build a responsible and transparent ecosystem.”