This penalty, announced by DNB on October 22, was imposed because it was deemed illegal for Bybit to operate in the Netherlands without registration. This penalty stems from violations of the country’s laws aimed at preventing money laundering and terrorist financing.

The Financial Crimes Prevention and Terrorist Financing Act, which came into force in 2020, aims to require all cryptocurrency service providers to be registered so that these companies can monitor money laundering or illegal financial flows.

According to DNB’s statement, the services Bybit provided by avoiding legal registration not only fell outside regulatory objectives, but also limited the company’s ability to report unusual or suspicious financial transactions.

DNB stated that the seriousness, scope and duration of the violation were taken into account when determining the penalty in question. However, the penalty amount was reduced considering Bybit’s efforts to become compliant in the Dutch market.

In this context, Bybit supports its Dutch users with its local partner SATOS B.V. company and started operating under the Virtual Asset Service Provider license in the Netherlands. Within the scope of this regulation, Bybit can continue to provide services to its customers legally with the license of SATOS.

After this penalty, Bybit made a statement stating that it accepted the penalty imposed by DNB and that they were working to comply with legal regulations. In the press release, Bybit announced that they have taken the necessary steps within the scope of the compliance process and started correction works in 2022 to minimize possible financial losses.

Bybit co-founder and CEO Ben Zhou expressed the exchange’s commitment to the compliance process, emphasizing the company’s commitment to “responsible growth and cooperation with regulators.”

Zhou stated that they will continue to cooperate closely with regulators in Europe and that Bybit aims to create a transparent and reliable ecosystem. These statements by Zhou show Bybit’s sensitivity to compliance in the global market.

This penalty by DNB shows that regulatory controls in the cryptocurrency market are tightening and countries are playing a more active role in preventing illegal activities in the field of digital assets.

The Netherlands has drawn attention to the risk of money laundering due to the anonymous nature of crypto transactions and has begun to inspect all players in the sector by subjecting them to legal registration.

The rapid adoption of new regulations across the European Union that introduce stricter compliance standards for crypto asset service providers is increasing supervision over cryptocurrency exchanges. These controls appear to be supported by legal frameworks specifically aimed at preventing money laundering and terrorist financing.

This penalty received by Bybit from DNB once again reveals the importance of compliance in the crypto asset market.

While DNB emphasizes that it is a legal obligation for industry players to be in the compliance process and that those who do not comply with these rules will be punished, Bybit’s acceptance of this penalty with its compliance efforts shows the company’s desire to gain credibility in the European market.