- Bybit Fintech Limited has been fined $2.45 million by the Dutch Central Bank (DNB) for unregistered crypto services
- Bybit’s activities in the Netherlands bypassed regulatory requirements aimed at anti-money laundering (AML) and counter-terrorism financing
- The company has until mid-December to contest the penalty
Bybit Fintech Limited faces a substantial €2.25 million ($2.45 million) penalty after the Dutch Central Bank (DNB) discovered it had been offering cryptocurrency services in the Netherlands without the legally required registration. Bybit’s failure to comply with the necessary protocols raised concerns over anti-money laundering (AML) and counter-terrorism financing oversight. This regulatory action highlights the country’s commitment to enforcing financial standards within the rapidly evolving crypto sector.
Violation of Dutch Regulatory Standards
The DNB reported that Bybit had provided services to Dutch consumers for an extended period, failing to meet critical local regulatory standards. These standards require crypto providers to be registered, ensuring transparency and compliance with AML laws. According to the DNB, Bybit’s unregulated activities allowed them to operate “outside the bounds of essential oversight,” raising potential risks for money laundering and other financial crimes.
The $2.45 million fine signals a serious stance by Dutch authorities toward companies operating without compliance. “Registration requirements exist to safeguard users and maintain the integrity of the financial system,” stated a DNB representative. This financial penalty follows warnings issued to crypto providers in the region, emphasizing that entities providing financial services without registration could face consequences, especially if they do not adhere to AML rules.
Bybit May Appeal
Bybit has been given until mid-December to appeal the fine. While the company has not publicly commented, sources close to the situation have indicated it is reviewing its options. This enforcement action serves as a reminder to crypto firms worldwide that, as DNB stated, “compliance with local regulations is not optional.”
The fine comes six months after France’s securities regulator, the Autorité des Marchés Financiers (AMF), issued a warning over Bybit, highlighting that Bybit was not registered as a digital asset service provider (DASP) and is operating illegally within the country.
