Bybit Temporarily Suspends Services to Indian Users

Bybit, a well-known cryptocurrency exchange, will temporarily limit its services in India starting January 12, 2025. According to the exchange, this decision is part of its effort to register as a Virtual Digital Asset Service Provider (VDASP) with the Indian authorities. Likewise, this move aims to help Bybit comply with local regulations in the fast-changing cryptocurrency world.

Bybit Committed to Following Regulations

Starting January 12, Indian customers will have new limits on the platform. They will no longer be able to open new trades or access Bybit products, including derivatives. However, they can still withdraw their funds during this time.

Furthermore, Bybit will introduce a “close-only” mode for users with existing derivatives positions. In this mode, users cannot add to or change their positions; they can only close their trades. The platform will also stop peer-to-peer (P2P) trading ads in India, and there will be restrictions on transactions involving Bybit’s crypto cards. 

Additionally, by January 13, all copy trading partnerships will end, and trading bots will be shut down. 

The Indian government has made it compulsory for all VASPs to register with India’s Financial Intelligence Unit, as stipulated under the Prevention of Money Laundering Act. Once this process is completed, the exchange will restore its services to the users. It expects to complete this process “in the coming weeks.”

Bybit Continuous Expansion

Recall that the prominent exchange secured a provisional license from Dubai’s Virtual Asset Regulatory Authority (VARA) in September 2024. 

Intriguingly, this VASP license allowed Bybit to provide virtual asset exchange services to retail and institutional investors in Dubai. Although, it remains a non-operational license for the time being. This means that Bybit would work to obtain a full operational license before rolling out its services in the region.

A few months later, Bybit officially registered as a VASP with the National Bank of Georgia. This achievement underscores Bybit’s unwavering dedication to regulatory compliance. It also establishes it as a key player in nurturing Georgia’s digital economy. In 2024 alone, the exchange successfully navigated the licensing landscape in several countries, including the Netherlands, Dubai, Kazakhstan, and Türkiye.

India Takes First Vital Step Towards Crypto Regulation

As reported by TheCoinRise, the Indian government published a consultation paper on crypto rules in October 2024. 

Seeking advice from stakeholders and industry professionals has helped the government clarify the regulatory environment that has, up until now, remained vague. Meanwhile, the government’s larger plan to handle problems presented by the fast-growing but mostly uncontrolled crypto industry depends much on the document.

India’s Ministry of Finance made it plain earlier last year that there were no urgent intentions to control crypto sales. However, virtual digital asset service providers (VDASPs) are subject to anti-money laundering (AML) rules. This careful approach reflects the government’s aim to include crypto assets in the financial system while prioritizing stability and security.