De Nederlandsche Bank (DNB) has announced a €2,250,000 fine for Bybit Fintech Limited. The penalty was imposed for offering cryptocurrency services in the Netherlands without the necessary registration. Bybit failed to comply with legal registration requirements until September 2023.
According to DNB, the registration is mandated by the Anti-Money Laundering and Anti-Terrorist Financing Act (Wwft), which was introduced on May 21, 2020. This regulation aims to mitigate risks associated with money laundering and terrorist financing within the crypto industry. The registration enables authorities to monitor crypto transactions and ensure companies report unusual activities to the Financial Intelligence Unit-Netherlands (FIU-NL). During the period Bybit operated without registration, such monitoring was not possible.
Bybit’s non-compliance with Wwft meant that it did not adhere to necessary safeguards for monitoring criminal financial activities, potentially allowing illicit transactions to go unnoticed. The fine reflects the severity, extent, and duration of this non-compliance. DNB considered Bybit’s efforts to resolve the issue, including transferring its Dutch customers to a local partner, which resulted in a reduced fine.
Bybit is a cryptocurrency exchange platform launched in 2018 aimed at supporting the growth of the crypto and Web3 ecosystem. It provides trading services and tools to over 50 million users globally, with a daily trading volume exceeding $25 billion. Bybit has expanded its operations worldwide, including opening an office in the Netherlands, and collaborates with multiple regulatory bodies such as the Virtual Assets Regulatory Authority in Dubai and the Cyprus Securities and Exchange Commission.
DNB is tasked with maintaining financial stability and promoting sustainable prosperity in the Netherlands. Its responsibilities include managing national gold reserves, issuing euro banknotes, overseeing financial institutions for regulatory compliance, implementing European monetary policies, and advising the Dutch government on economic matters to support a stable financial system.
