Bybit Resumes India Operations After $1M Penalty, Mandatory Registration

Crypto exchange giant Bybit has paid a $1 million penalty to Indian regulators and secured mandatory registration, allowing it to resume operations in the country. The Dubai-based exchange, which is the world's second-largest by trading volume, temporarily suspended its services in India last month after failing to comply with the country's anti-money laundering regulations.

Bybit's websites were blocked by the Financial Intelligence Unit (FIU-IND) following the violations, and the exchange was ordered to pay a fine of Rs. 9 crore 27 lakhs ($1,058,512). In a statement published on Thursday, Bybit confirmed that it has officially registered with the FIU-IND and settled the monetary fine.

"Bybit has diligently addressed and resolved prior regulatory matters, further demonstrating its dedication to transparency and the highest standards in the Indian market," the exchange said in a statement. Bybit has been working to comply with necessary regulatory requirements, including its Virtual Digital Asset Service Provider (VDASP) registration application filed on June 26th, 2024.

"We believe that our engagement and cooperation throughout the FIU-IND registration process demonstrates our commitment to compliance," the exchange added.

Bybit informed its users in January that it would resume its full service after completing its registration process with the FIU-IND. The exchange's temporary suspension in India prevented users in the country from opening trades or accessing products on its platform, only allowing withdrawal transactions.

The Indian crypto market has been a subject of regulatory uncertainty in recent years, with the government implementing strict rules and guidelines for crypto exchanges operating in the country. Despite the challenges, the market has shown significant growth, with India becoming one of the world's largest crypto markets by user base.

Bybit's re-entry into the Indian market is a positive sign for the country's crypto industry, as it demonstrates the exchange's commitment to compliance and its willingness to work with regulators to ensure a safe and transparent trading environment. As the crypto market continues to evolve, it is crucial for exchanges to prioritize regulatory compliance and build trust with users and regulators alike.