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 The Netherlands’ central bank, De Nederlandsche Bank, has imposed a €2.2 million ($2.4 million) fine on Bybit for providing crypto services in the country without proper registration. 
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The penalty addresses Bybit’s non-compliance with regulations aimed at preventing money laundering and terrorist financing.
<a href="https://www.dnb.nl/en/sector-news/enforcement-measures-2024/fine-for-bybit-fintech-limited-for-offering-crypto-services-in-the-netherlands-without-the-legally-required-registration-until-september-2023/" rel="noopener noreferrer nofollow">According to the Bank,</a> the €2.2 million fine issued on October 22 resulted from Bybit’s failure to register with De Nederlandsche Bank (DNB) as required by the Anti-Money Laundering and Anti-Terrorist Financing Act. This regulation, implemented in May 2020, mandates that crypto service providers register with DNB to better monitor and prevent illicit financial activities, especially given the anonymity often associated with cryptocurrency transactions.
DNB noted that Bybit’s non-compliance not only breached regulatory requirements but also limited the company’s capacity to monitor and report suspicious transactions.
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 “Bybit was unable to report unusual transactions to the Financial Intelligence Unit-Netherlands during the period of non-compliance,” 
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De Nederlandsche Bank
DNB stated that the fine considered the gravity, scope, and duration of Bybit’s non-compliance, though it was reduced due to the exchange’s corrective efforts. Bybit has since redirected its Dutch customers to SATOS B.V., operating under SATOS’s Virtual Asset Service Provider licence.
Bybit<a style="color: #0000ff;" href="https://www.bybit.com/en/press/post/bybit-powered-by-satos-reaffirms-regulatory-compliance-and-future-growth-in-the-netherlands-bltf5a7d25d3f898d75" rel="noopener noreferrer nofollow"> responded</a> to DNB’s statement by acknowledging the fine and reaffirming its commitment to compliance. In a<a style="color: #0000ff;" href="https://www.bybit.com/en/press/post/bybit-powered-by-satos-reaffirms-regulatory-compliance-and-future-growth-in-the-netherlands-bltf5a7d25d3f898d75" rel="noopener noreferrer nofollow"> press release</a>, the exchange emphasized that it began corrective actions in 2022 to “minimize potential financial damage.”
Co-founder and CEO Ben Zhou reiterated the crypto exchange’s commitment to “responsible growth” and expressed a dedication to collaborating with European regulators to foster a transparent and accountable ecosystem.
This fine by the Dutch central bank comes as the Ministry of Finance opens a consultation on a<a style="color: #0000ff;" href="https://defi-planet.com/2024/10/netherlands-seeks-public-input-on-proposed-crypto-tax-rules/" rel="noopener noreferrer nofollow"> proposed</a> regulatory framework to tighten crypto tax rules and enhance transparency in digital asset ownership.&nbsp;
The draft legislation, expected to take effect on January 1, 2026, will require crypto service providers to collect and verify user data for submission to the Dutch Tax Administration. Notably, these tax rules align with the European Union’s DAC8 directive to enable streamlined, single-country reporting for crypto providers across EU member states, thereby simplifying compliance and reducing administrative burdens.
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The post <a href="https://defi-planet.com/2024/10/dutch-central-bank-fines-bybit-2-4m-for-service-violations/" rel="noopener noreferrer nofollow">Dutch Central Bank Fines Bybit $2.4M for Service Violations</a> appeared first on <a href="https://defi-planet.com" rel="noopener noreferrer nofollow">DeFi Planet</a>.

Dutch Central Bank Fines Bybit $2.4M for Service Violations

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