Bybit, the world’s second-largest crypto exchange by daily trading volume, is back in the Indian market after addressing regulatory concerns and paying a ₹9.27 crore ($1.06 million) fine imposed by the Financial Intelligence Unit-India (FIU-IND).
The company, which halted services in January due to compliance issues, has now secured the necessary registration.
India’s Ministry of Finance confirmed that Bybit had been operating in the country without proper registration, violating the Prevention of Money Laundering Act, 2002 (PMLA).
The FIU-IND, led by Director Vivek Aggarwal, found Bybit guilty of multiple violations and ordered a financial penalty on 31 January 2025.
The Ministry stated,
“The persistent and continuous non-compliance caused FIU-IND to block their websites to stop operations under the Information Technology Act, 2000 through the Ministry of Electronics and Communication Technology (MEITY).”
Under Indian law, virtual digital asset service providers (VDA SPs) are classified as “reporting entities” and must comply with strict anti-money laundering (AML) and counter-terrorism financing (CFT) regulations.
The FIU-IND had issued AML and CFT guidelines on 10 March 2023, followed by a mandatory registration directive for all VDA service providers on 17 October 2023.
Bybit’s latest press release states that it has successfully complied with FIU-IND’s requirements and is committed to operating within India’s regulatory framework.
The company stated,
“Bybit is committed to operating within the regulatory framework of India and takes its compliance obligations seriously. We have been working diligently with the FIU-IND to address their concerns and ensure full adherence to the Prevention of Money Laundering Act (‘PMLA’) and associated regulations.”
Bybit’s CEO also shared the news on social media, marking the firm’s return to one of its key Asian markets.
Crypto influencer Budhil Vyas reacted to the development, writing,
“Bybit officially registers with India’s financial regulator and settles pending fines. Full operations license expected soon. Another W for crypto adoption in India, but get ready for that sweet 30% tax + 1% TDS.”
India’s regulatory environment for cryptocurrencies remains uncertain.
In the past, officials have pushed for strict restrictions, including a potential ban on Bitcoin and other assets in favor of the country’s central bank digital currency (CBDC).
At the same time, political sentiment around crypto appears to be shifting.
Economic Affairs Secretary recently suggested easing restrictions, arguing that crypto assets “don’t believe in borders.”
Bybit is not the only exchange facing compliance issues in India.
Binance recently owed the government $85 million in taxes, while WazirX also encountered scrutiny.
As part of its re-entry strategy, Bybit has joined the Bharat Web3 Association and partnered with blockchain societies at major universities.
The exchange is also organising workshops, hackathons, and other initiatives to strengthen ties with India’s crypto community.
Despite the evolving regulatory landscape, Bybit is now back in business, looking to expand its presence in one of the fastest-growing crypto markets in the world.
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