Bybit Resumes Operations in India After Regulatory Clearance

Bybit, one of the leading cryptocurrency exchanges, has successfully registered with India’s Financial Intelligence Unit (FIU-IND) after facing compliance challenges in the country. The announcement marks a key step in Bybit’s strategy to re-enter the Indian market, following a temporary suspension of its services last month.

The exchange revealed that it has resolved previous regulatory concerns by settling a monetary fine of $1 million. It has ensured full adherence to the Prevention of Money Laundering Act (PMLA) and related guidelines. “We have been working diligently with FIU-IND to address their concerns,” Bybit noted in its statement.

VDASP License

Bybit has applied for a Virtual Digital Asset Service Provider (VDASP) license, with its registration submission dated June 26, 2024. This license is critical for maintaining full compliance with Indian regulations governing digital asset service providers.

Vikas Gupta, Bybit’s country manager for India, expressed optimism about the situation, stating they expect operations to resume fully within weeks. The move comes at a time when regulatory scrutiny around cryptocurrencies is intensifying in India.

The country’s financial authorities have ramped up their oversight of digital asset transactions to combat money laundering and financial crimes. Exchanges like Bybit are now required to perform extensive anti-money laundering (AML) measures, including source-of-funds verifications, risk assessments, and customer due diligence (CDD).

Broader Industry Compliance Trends

India’s regulatory environment for crypto remains uncertain, with cryptocurrencies yet to be recognized as legal tender. However, crypto trading continues to thrive as users engage with exchanges operating under evolving compliance frameworks.

The government is currently drafting the Cryptocurrency and Regulation of Official Digital Currency Bill, which aims to introduce an official digital currency while potentially restricting private cryptocurrencies.

Other global exchanges have also faced similar regulatory hurdles in India. The world’s largest crypto exchange, Binance resumed operations in June 2024 after settling a $2.25 million fine imposed by FIU-IND for non-compliance issues.

As compliance standards continue to tighten in India, industry players are navigating the challenges to maintain their foothold in one of the world’s most dynamic cryptocurrency markets.