Dubai-based exchange Bybit has received a €2.25 million ($2.4 million) sanction from the Dutch central bank. Per reports, Bybit faulted by dishing unregulated services to Netherland indigenes. The gravity of the offense warranted a much higher penalty fee, but the exchange's compliance efforts reduced the penalty cost.
The regulatory body, however, hinted that the fine was in line with the region's anti-money laundering structure. The penalty aims to deter other business enterprises from repeating similar acts in the future.
Bybit's Defiant Actions That Warranted The €2.25 million Sanction
Bybit was sanctioned following two violations. Firstly, it has been operating without a functional license from a regulatory institution. The firm has been reluctant to register under the DNB registration schedule since October 2020.
On the other hand, it is not wrong to assume that the company has been supporting illegal services in this region as they are unlicensed. Hence, the financial intelligence unit has no idea about the transactions on the exchange.
Plans To Mitigate Future Occurrences
In response to the sanction, Bybit acknowledged its misdoings and stated its readiness to pay the fines. A recent investigation revealed that Bybit collaborated with SATOS B.V. as part of efforts to acquire the DNB virtual Asset Service Provider (VASP) partnership license. The collaboration will qualify them to take transaction orders until permanent paperwork is authorized.
Ben Zhou, Co-founder and CEO at Bybit, stated: "Since our partnership with SATOS, we have operated fully within the regulatory framework. Currently, Bybit Powered by Satos is growing into the number two exchange in the market with 10 million users. Bybit Powered by Satos is also working closely with local universities. "
Meanwhile, following the Market in Crypto-Assets Regulation (MiCAR) proposed adoption in the Netherlands, all business and financial firms must obtain a full registration certificate on or before December 30, 2024, or risk the consequences. With these measures, the Netherlands is en route to mitigating fraudulent activities within its vicinity.
