Bybit Resumes India Operations After FIU Registration, VDASP License Awaited

Generated by AI AgentCoin World
Wednesday, Feb 5, 2025 8:06 am ET1min read
BNB
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Bybit, a leading global cryptocurrency exchange, has taken a significant step towards resuming full operations in India by registering with the country's Financial Intelligence Unit (FIU). This move comes after the exchange faced regulatory issues, leading to a temporary halt of its services in the region.

On February 5, Bybit announced its official registration with India's FIU, a critical requirement for any financial entity operating in the country. Vikas Gupta, Bybit's country manager for India, expressed confidence in the process, stating that the exchange expects to secure its full operational license within weeks.

As part of the registration process, Bybit had to pay a fine of $1.06 million for previous violations under the Prevention of Money Laundering Act (PMLA) of 2005. This settlement has effectively resolved all outstanding compliance issues, paving the way for a smoother regulatory path ahead. The exchange has also committed to working closely with Indian authorities to ensure full compliance with the country's financial laws.

Beyond its FIU registration, Bybit is aiming for a Virtual Digital Asset Service Provider (VDASP) license, which would allow it to fully operate in India's crypto market. The exchange submitted its application for VDASP registration on June 26, 2024, and is now awaiting approval. This update comes shortly after Bybit suspended its services in India due to evolving regulatory concerns, suggesting the company is actively working towards a full comeback.

Bybit is not the only cryptocurrency exchange facing action from Indian authorities. Binance, KuCoin, and OKX have also encountered challenges, with tougher rules on registration and compliance. However, both Binance and KuCoin have agreed to follow India's PMLA rules and resumed operations in the country after facing regulatory issues.

These changes indicate that India is taking a stronger stance on regulating the crypto industry, setting clear guidelines, and penalizing those who do not follow them. As the crypto market continues to grow, it is essential for exchanges to comply with local regulations to ensure a stable and secure trading environment.