Quick Facts:
- Bybit has officially registered with FIU-IND after paying a $1 million fine for prior regulatory non-compliance.
- The exchange had temporarily suspended services in India but will now resume operations under full compliance with the Prevention of Money Laundering Act (PMLA).
- India’s regulatory crackdown on offshore crypto exchanges has forced major platforms to either comply or exit the market.
- Bybit’s regulatory success may set a precedent for other crypto firms looking to re-enter India under new compliance measures.
Crypto exchange Bybit has successfully registered with India’s Financial Intelligence Unit (FIU-IND) after settling a $1 million fine for previously operating in the country without proper regulatory approval. The move allows Bybit to resume its services in India.
Bybit was among the nine offshore crypto exchanges targeted by Indian regulators for failing to comply with local anti-money laundering (AML) regulations. On January 31, 2025, FIU-IND imposed a 92.7 million rupee ($1M) fine on the exchange, leading to Bybit temporarily suspending its services to Indian users while it worked to resolve the issue.
Following negotiations with Indian authorities, Bybit announced its full compliance with the Prevention of Money Laundering Act (PMLA) and reaffirmed its long-term commitment to the Indian market. The exchange stated that it had been working closely with FIU-IND to address all concerns and ensure adherence to local regulations.
In a statement after the resolution, Bybit reinstated its commitment to the Indian Market:
“We believe that our engagement and cooperation throughout the FIU-IND registration process demonstrates our commitment to compliance. We have been actively working to fulfill all necessary requirements for compliance, including its registration application on 26 June 2024 as a Virtual Digital Asset Service Provider (“VDASP”) in India.”
India’s Intensifying Crypto Oversight
India’s tightened grip on the crypto sector stems from its March 2023 decision to bring digital assets under anti-money laundering (AML) rules. The regulation made crypto exchanges, NFT marketplaces, and custody service providers legally responsible for monitoring and reporting suspicious financial activities.
Under these rules, crypto firms operating in India must register with the Financial Intelligence Unit (FIU-IND) and comply with the Prevention of Money Laundering Act (PMLA). This requires them to implement robust customer due diligence procedures, maintain transaction records, and report suspicious activities to authorities.
Additionally, crypto businesses must now appoint a Money Laundering Reporting Officer (MLRO) to ensure compliance with regulatory mandates. The increased record-keeping and due diligence requirements aim to reduce financial crimes involving crypto assets and align India’s crypto policies with global financial standards.
With these new rules, the country has stepped up enforcement against unregistered exchanges, pushing firms to either comply with local laws or risk being forced out of the market.
With India emerging as one of the largest crypto markets globally, exchanges like Bybit, Binance, and OKX will be putting in deliberate efforts to ensure their presence in the world’s most populated country is secured.
Bybit exchange is now expected to resume full operations, offering crypto trading, staking, and investment services to Indian users under its new regulatory framework.
