India, Bybit, a prominent global crypto exchange, has announced its successful registration with India’s Financial Intelligence Unit (FIU). This development comes on the heels of the exchange addressing previous regulatory challenges, including the settlement of a substantial fine, signaling its commitment to compliance and a renewed focus on the burgeoning Indian market.
Bybit’s Regulatory Journey in India
Bybit’s path to regulatory compliance in India has been marked by significant milestones. In January 2025, the exchange proactively suspended its services in the country to align with local regulations. This suspension was a strategic decision to facilitate the registration process with the FIU as a Virtual Digital Asset Service Provider (VDASP).
The exchange emphasized its dedication to adhering to the Prevention of Money Laundering Act (PMLA) and other pertinent regulations.
In a statement, Bybit conveyed,
“We have taken this measure while we continue to work closely with the regulator to finalize our registration as a Virtual Digital Asset Service Provider in India, which we expect to secure in the coming weeks.”
Settlement of Regulatory Penalties
Demonstrating its commitment to resolving past compliance issues, Bybit settled a fine imposed by FIU-IND for violations under the PMLA. The exchange’s proactive approach in addressing these challenges underscores its dedication to operating within the legal frameworks established by Indian authorities.
Anticipation of Full Operational License
With the FIU registration now secured, Bybit is optimistic about obtaining its full operations license in India. Vikas Gupta, Bybit’s country manager for India, expressed confidence in the process, stating that the company expects to finalize its full operations license in the coming weeks. This development is poised to enhance Bybit’s service offerings in India, providing users with a secure and compliant trading environment.
Implications for the Indian Crypto Market
Bybit’s successful navigation of India’s regulatory framework sets a precedent for other crypto exchanges operating in the region. It highlights the importance of compliance and collaboration with regulatory bodies to ensure sustainable operations. For Indian crypto enthusiasts, Bybit’s adherence to local laws offers reassurance of the platform’s legitimacy and commitment to user security.
Conclusion
Bybit’s journey through India’s regulatory landscape reflects a broader narrative of the crypto industry’s maturation and its integration into traditional financial systems. By prioritizing compliance and working closely with regulatory authorities, Bybit not only strengthens its position in the Indian market but also contributes to the establishment of a more robust and secure crypto ecosystem in the country.
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FAQs
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What is Bybit’s current status in India?
Bybit has successfully registered with India’s Financial Intelligence Unit (FIU) as a Virtual Digital Asset Service Provider and is working towards obtaining its full operations license.
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Why did Bybit suspend its services in India earlier?
The suspension was a strategic move to align with local regulations and facilitate the registration process with the FIU.
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What fine did Bybit settle with FIU-IND?
Bybit settled a fine imposed for violations under the Prevention of Money Laundering Act (PMLA), demonstrating its commitment to compliance.
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When is Bybit expected to resume full operations in India?
Bybit anticipates finalizing its full operations license in the coming weeks, after which it plans to resume full services.
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How does Bybit’s compliance benefit Indian users?
Bybit’s adherence to local regulations ensures a secure and legally compliant trading environment for Indian users.
Glossary of Key Terms
Financial Intelligence Unit (FIU): A government agency responsible for receiving, processing, and analyzing financial information to combat money laundering and terrorist financing.
Virtual Digital Asset Service Provider (VDASP): An entity that provides services related to the exchange, transfer, or custody of virtual digital assets.
Prevention of Money Laundering Act (PMLA): Indian legislation aimed at preventing money laundering and providing for the confiscation of property derived from money laundering.
Compliance: Adherence to laws, regulations, guidelines, and specifications relevant to an organization’s operations.
Regulatory Framework: A set of rules and regulations established by authorities to govern specific activities or industries.
