The exchange is also pursuing a VDASP license to further solidify its standing in India, following strict new government rules requiring crypto exchanges to register with the FIU.
By Chimamanda U. Martha
Edited by Marco T. Lanz
Updated
3 mins read
Cryptocurrency exchange Bybit has re-entered the Indian market after suspending operations due to mounting regulatory pressure. On Wednesday, the company announced that it has officially registered with India’s Financial Intelligence Unit (FIU) as a fully compliant exchange.
Users can now resume all trading activities, including buying and selling cryptocurrencies such as Bitcoin BTC $78 929 24h volatility: 1.0% Market cap: $1.57 T Vol. 24h: $69.02 B , Ethereum ETH $1 494 24h volatility: 2.6% Market cap: $180.44 B Vol. 24h: $30.26 B , and Ripple’s XRP $1.94 24h volatility: 1.0% Market cap: $113.24 B Vol. 24h: $5.93 B , on the platform. Bybit also confirmed that its derivatives market is open for trading.
In January, Bybit suspended all trading activities in India until it completed the necessary licensing paperwork. During that period, users were only able to withdraw their funds. The company assured its customers that the trading halt was temporary and that services would resume as soon as the FIU registration was finalized.
“We are committed to resuming full service as soon as we have completed our registration process with the FIU,” the exchange wrote at that time.
According to reports on X (formerly Twitter), Bybit has now finished its registration with the FIU, the regulatory body responsible for overseeing anti-money laundering measures.
JUST IN: 🇮🇳Bybit registers with FIU India after paying ₹9.27 Cr penalty pic.twitter.com/kOwl6LgEH7
— Crypto India (@CryptooIndia) February 5, 2025
In addition to the registration, Bybit has settled a monetary fine of ₹9,27,00,00 (approximately $1.06 million) for prior non-compliance with local regulations. The exchange violated the provisions of the Prevention of Money Laundering Act (PMLA), designed to track and control the flow of money from criminal activities.
The exchange is also in the process of acquiring a Virtual Digital Asset Service Provider (VDASP) license in India. Bybit formally submitted its application with the appropriate authorities in on June 26, 2024 and is currently awaiting their decisions.
Meanwhile, Bybit’s re-entry into the Indian market comes as part of a broader push by the Indian government for offshore crypto exchanges to register with local authorities before servicing their users.
In 2023, the government made it compulsory for service operators to register with the FIU prior to entering the country. This move has been accompanied by strict compliance requirements under the Prevention of Money Laundering Act (PMLA), including robust Know-Your-Customer (KYC) measures.
That same year, India cracked down on many crypto exchanges such as Binance, KuCoin, Kraken, HTX (formerly known as Huobi Global) Gate.io, Bittrex, Bitstamp, MEXC Global, and Bitfinex for operating without appropriate authorization. The government ordered the FIU to block access to their websites to prevent Indians from accessing them.
Since then, companies like Binance have since settled their penalty charges, which prompted the government to lift their ban. Currently, both the company’s mobile and website are accessible in the region.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Chimamanda is a crypto enthusiast and experienced writer focusing on the dynamic world of cryptocurrencies. She joined the industry in 2019 and has since developed an interest in the emerging economy. She combines her passion for blockchain technology with her love for travel and food, bringing a fresh and engaging perspective to her work.
