Crypto exchange ByBit has been slapped with a EUR 2.3 million fine by De Nederlandsche Bank on allegations of unregistered Crypto transactions.
The platform has decided to comply with and accept the ruling, stating that “the decision by DNB to levy a EUR 2,250,000 fine for offering services without registration from October 2, 2020, to September 15, 2023, is acknowledged by Bybit Powered by SATOS. Bybit honors the DNB’s ruling.”
Bybit Mitigates DNB Ruling
In order to mitigate the ruling by DNB, Bybit has decided to take adequate steps to prevent further damage to customer good. For the same, Bybit has become the first exchange in the Netherlands to adopt the regulation following the regulator’s announcement, started its remediation efforts as early as 2022 by facilitating the transfer of Dutch customers to SATOS B.V.
Bybit had successfully completed the transfer of Dutch customers on September 15, 2023, and kept the DNB fully informed throughout the process.
The platform has been operating under the name Bybit Powered by SATOS since September 2023, utilizing SATOS’s DNB-accredited Virtual Asset Service Provider (VASP) license.
Additionally, the platform has recently opened a local office in Amsterdam, to help better inculcate the regulations and prevent any further strides with the regulatory.
Ben Zhou, Co-founder and CEO of Bybit, said “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.”
He adds “Bybit Powered by Satos is also working closely with local universities. At Bybit, we remain committed to working closely with European regulators to build a responsible and transparent ecosystem. We are excited to continue providing secure, reliable services to the Dutch community as we responsibly expand across Europe.”
ByBit’s FTX Settlement
The bone of contention with DNB comes with the backdrop of ByBit recently trying to solve its issues over FTX resettlement. According to Bloomberg, in a $228 million settlement, FTX has consented to end legal action against Bybit, allowing FTX to recoup a sizeable amount of money held on the platform.
The agreement will allow FTX to recover $175 million in digital assets from Bybit’s exchange and sell additional assets, including BIT tokens, to Bybit’s investment arm Mirana Corp. for $53 million.
Last year, FTX filed a lawsuit alleging that accounts linked to Bybit transferred $327 million out of FTX shortly before its demise, preventing other customers from making withdrawals.