Bybit has received a ₹9.27 crore ($1.06 million) financial penalty from the Financial Intelligence Unit-India (FIU-IND). This is because of violations under the Prevention of Money Laundering Act (PMLA).
The FIU India sanctioned it with a penalty of ₹9.27 crore. The reason is that the company never registered as a reporting entity and maintained operations in violation of the required compliance requirements.
The regulatory action led Bybit to temporarily suspend its services for Indian users starting from January 12, 2025. The exchange stated that users must wait until their services become available again for new trade creation and product access, except for withdrawal functionality.
Bybit demonstrated its dedication to local compliance through active VDASP registration under Indian law, which it pursued in order to resume full service after finalizing the registration process.
Bybit faces regulatory challenges amid growing crypto oversight
Members of the crypto community continue active discussions about these recent developments. A Reddit user, Bitmandoo, emphasized how Bybit’s platform suspension would affect domestic traders. While noting the difficult regulatory environment that exists in India for cryptocurrency trading
Because of expanding oversight, the regulatory climate in India now targets cryptocurrency exchanges like Bybit. Crypto platforms must comply with local anti-money laundering regulations to avoid severe fines and government-enforced disruptions to their operations.
The FIU’s decision highlights the government’s dedication to strengthening oversight in the digital asset sector, ensuring all participants comply with AML and financial security regulations.
Earlier, BTCRead reported that Bybit and its CEO, Ben Zhou, are facing strict enforcement by the Securities Commission Malaysia for operating an unregistered digital asset exchange, highlighting the increasing regulatory pressure on crypto platforms.
The larger crypto sector will watch Bybit’s efforts to conform to India’s legal framework. After realizing that compliance and flexibility are essential for long-term operations in the dynamic world of digital assets.
