Bybit App Settles $1 Million Penalty, Regains Access to Indian Market

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The cryptocurrency exchange Bybit app has made significant strides toward resuming its operations in India after registering with the country’s Financial Intelligence Unit (FIU). In a statement shared with crypto.news on February 7, 2025, the exchange announced its compliance with India’s Prevention of Money Laundering Act (PMLA) following a settlement with Indian regulators. This move marks the end of Bybit’s temporary suspension from India after an earlier fine of approximately INR 9.27 crore ($1.06 million).

Bybit app registration with the FIU paves the way for the firm to restart its operations in India, a market that has become increasingly important for crypto exchanges. The company, headquartered in Dubai, is working to align with India’s stringent regulatory framework to offer services while ensuring full compliance with local financial laws.

Bybit’s Compliance Efforts and Registration with India’s FIU

Bybit app efforts to comply with India’s regulatory requirements followed a series of events that led to the company’s temporary suspension in January 2025. The Ministry of Finance issued a notice indicating that Bybit had been operating in India without the necessary registration with the FIU, a violation of local laws under the PMLA. The Indian government responded by imposing a fine on the exchange for its non-compliance.

“We recognize the importance of robust Anti-Money Laundering and Combating the Financing of Terrorism measures and are dedicated to upholding the highest standards in these areas,” Bybit wrote in its press release.

The exchange further assured that it had worked diligently with the Financial Intelligence Unit of India to address all concerns raised by regulators.

As part of the registration process, Bybit app cleared its penalty payment, marking its commitment to meeting the regulatory expectations. The settlement amount is significant, yet it allows Bybit to resume its services in the country, which had been paused since January 12, 2025. According to reports, this fine is one of the largest imposed on a cryptocurrency exchange in India, highlighting the government’s serious stance on non-compliance.

India’s Strict Regulatory Environment for Crypto Exchanges

Since March 2023, India has introduced stricter regulatory measures for cryptocurrency exchanges operating within its borders. All platforms, including those based offshore, must register with the Financial Intelligence Unit and comply with the Prevention of Money Laundering Act (PMLA). This law requires crypto exchanges to implement robust reporting systems and record-keeping practices to prevent money laundering and the financing of terrorism.

Non-compliance with these regulations has led to penalties and even website blocks. Bybit app was one of the several platforms affected by this crackdown. Binance, another major player in the cryptocurrency space, also faced a significant penalty in India last year, paying INR 18.82 crore (approximately $2.25 million) for similar non-compliance issues. The Ministry of Electronics and Information Technology subsequently blocked Bybit’s website under the Information Technology Act of 2000.

The registration with the FIU and the settlement of the penalty means that Bybit can now legally operate in India once again. The exchange has also committed to a greater emphasis on compliance with anti-money laundering and counter-terrorism financing protocols.

Bybit’s Commitment to India’s Blockchain and Web3 Ecosystem

Bybit app is not only focused on regulatory compliance but is also making efforts to contribute positively to India’s blockchain and Web3 ecosystem. The company has applied for a Virtual Digital Asset Service Provider (VDASP) license, which would further solidify its position in the country’s crypto market. Bybit submitted its application for this license on June 26, 2024.

Additionally, Bybit app has partnered with top educational institutions like IIT Delhi and IIT Kharagpur to offer educational initiatives aimed at promoting blockchain technology in India. It has also joined the Bharat Web3 Association, a local advocacy group, to promote the adoption of Web3 technologies in the region.

These actions demonstrate Bybit’s commitment to not just adhering to local regulations but also fostering the growth of the cryptocurrency sector in India. With its ongoing regulatory adjustments and active participation in educational and advocacy initiatives, Bybit aims to position itself as a key player in India’s rapidly evolving digital economy.

Conclusion: Bybit’s Future in India and Beyond

Bybit’s registration with India’s Financial Intelligence Unit (FIU) and the settlement of a significant penalty mark a pivotal moment for the exchange. While the fine was a setback, it has opened the door for Bybit app to re-enter the Indian market with a commitment to full regulatory compliance. The company’s efforts to promote blockchain technology and Web3 adoption in India also indicate its long-term intentions to be a key player in the country’s cryptocurrency ecosystem.

Bybit’s story highlights the increasing regulatory scrutiny on cryptocurrency exchanges worldwide. It underscores the importance of adhering to local laws, especially in markets with strong regulations like India. Moving forward, Bybit’s actions in India could serve as a model for other exchanges operating in the country and in similar markets. Keep following Turkishnyradio and keep an eye on Crypto updates and developments.

FAQs

1. Why was Bybit app fined in India?
   

   Bybit was fined for operating in India without registering with the country’s Financial Intelligence Unit (FIU), violating the Prevention of Money Laundering Act (PMLA).

2. How much was Bybit’s fine in India?
   

   Bybit app paid a fine of INR 9.27 crore (approximately $1.06 million) to settle its non-compliance issue with Indian regulators.

3. Is Bybit still operating in India?
   

   Yes, Bybit app has resumed its operations in India after settling the fine and registering with the Financial Intelligence Unit (FIU).

4. What is the Prevention of Money Laundering Act (PMLA)?
   

   The Prevention of Money Laundering Act (PMLA) is a law in India that mandates cryptocurrency exchanges to follow strict reporting and record-keeping obligations to combat money laundering and terrorism financing.

Glossary of Key Terms

• FIU (Financial Intelligence Unit): A government agency responsible for overseeing anti-money laundering activities and regulating financial institutions.
• PMLA (Prevention of Money Laundering Act): A law that mandates financial institutions to adhere to anti-money laundering measures in India.
• VDASP (Virtual Digital Asset Service Provider): A license required by crypto exchanges and service providers to legally operate in India.

References

1. crypto.news – Bybit Registers with India’s FIU After Paying $1 Million Penalty
2. Ministry of Finance, Government of India – Regulatory Notices on Cryptocurrency
3. Bharat Web3 Association – Promoting Blockchain and Web3 Adoption