- Bybit registers with Indian Financial Intelligent Unit (FIU) after settling a monetary fine.
- Indian FIU fined Bybit over $1 million for violating Prevention of Money Laundering Act rules.
Bybit crypto exchange has finally registered with Indian financial regulator FIU after facing compliance issues. Referring to the same, CEO Ben Zhou posted on X saying this is good news for Indian users.
Despite being the top-second crypto exchange in the world by trading volume, Bybit had to face a penalty of more than $1 million from Indian regulators. Even though the exchange is now completed its registration with Indian FIU, it anticipates a full operations license in the next few weeks.
Regulatory Challenges for Bybit in India
Based on a press release from the Press Information Bureau of India, Bybit faced a $1.06 million (9.27 crores INR) fine from FIU. The reason behind the penalty is that the exchange platform didn’t comply with the Prevention of Money Laundering Act (PMLA) rules in the country. Furthermore, the report stated that the exchange kept expanding its services in India without registering with the FIU-IND.
The Indian Financial regulator FIU-IND blocked Bybit websites and halted its operations in the country in Jan 2025. Detailed AML and CFT guidelines for exchanges offering virtual digital asset trading were issued in 2023. Thus, the violation of these rules caused a penalty of 9.27 crore for the crypto exchange.
Bybit announced that it is suspending its services in India on Jan 10, 2025. It also mentioned that it aims to operate in full compliance with all applicable rules and regulations.
Even though the exchange suspended its services in India from Jan 12, the Indian FIU imposed a penalty on Jan 31. The announcement from Bybit clearly stated that Indian users will “temporarily” be unable to open new trades and access its services except for withdrawals.
The exchange highlighted that this is due to the recent developments from Indian regulators. But, the press release from the Indian website stated that the rules have existed since 2023. Nonetheless, the fact that Bybit settled the monetary penalty to operate in the country with full compliance is notable.
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