Dubai-based cryptocurrency exchange Bybit has successfully registered with India’s Financial Intelligence Unit (FIU-IND) after paying a ₹92.7 million ($1 million) fine. The penalty was imposed due to its failure to register under India’s Prevention of Money Laundering Act (PMLA) while operating in the country.
In January 2025, Bybit announced a temporary suspension of its services in India to resolve regulatory concerns. While users could access their funds, new trades were restricted. However, after addressing compliance issues, the exchange is now set to restart operations.
India’s Tightening Crypto Regulations
India has ramped up its regulatory oversight on crypto exchanges to curb money laundering and illicit financial activities. In March 2023, the government mandated that all crypto platforms catering to Indian users must register with FIU-IND and comply with anti-money laundering laws.
This move led to a crackdown on offshore exchanges like Binance, KuCoin, and Kraken, which had to halt services in India until securing regulatory approval. Bybit’s recent clearance marks a significant step towards compliance, allowing it to legally operate in the country again.
Bybit’s Future in India
Following the settlement of penalties, Bybit is now on track to receive a full operational license in India in the coming weeks. This will enable the exchange to offer uninterrupted services to Indian traders under the country’s regulatory framework.
Additionally, Bybit had applied for a Virtual Digital Asset Service Provider (VDA) license in July 2024. While the approval is still pending, this registration will further strengthen its standing in the Indian market.
Impact on the Indian Crypto Market
Bybit’s return comes at a time when India is tightening its grip on digital assets, signaling that compliance is the only path forward for crypto businesses. As exchanges adhere to the new norms, users can expect safer and more regulated trading environments.
Bybit’s successful registration with FIU-IND sets a precedent for other exchanges, reinforcing India’s commitment to a structured and compliant crypto ecosystem.
