Bybit has resumed operations in India after its temporary suspension, now registered with the Financial Intelligence Unit (FIU).
The move comes amid India’s mandate for all crypto exchanges to register with the FIU, following last year’s crackdown on several major platforms.
The exchange has settled a fine of ₹9,27,00,00 ($1.06 million) and is pursuing a VDASP license to fully comply with Indian regulations.
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 , Ethereum , and Ripple’s , on the platform. Bybit also confirmed that its derivatives market is open for trading.
Resumption of Services and Regulatory Compliance
In January, Bybit 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.
“We are committed to resuming full service as soon as we have completed our registration process with the FIU,” the exchange 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
JUST IN: 🇮🇳Bybit registers with FIU India after paying ₹9.27 Cr penalty
— Crypto India (@CryptooIndia)
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.
India Cracks Down on Crypto Exchanges
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 on many crypto exchanges such as , 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.