Cryptocurrency exchange Bybit is set to resume its operations in India after successfully registering with the country’s Financial Intelligence Unit (FIU) and settling a non-compliance penalty. The Dubai-based firm confirmed its compliance with India’s Prevention of Money Laundering Act (PMLA) in a press release shared with crypto.news.
Bybit disclosed that it has paid a fine of INR 9.27 crore (approximately $1.06 million) imposed by the Indian Ministry of Finance. The penalty was levied after regulators found that Bybit had been operating in India without the required FIU registration. The company stated, “We have been working diligently with the FIU-IND to address their concerns. 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.”
The Ministry of Electronics and Information Technology had previously blocked Bybit’s website under the Information Technology Act of 2000 due to the firm’s “persistent and continuous non-compliance,” according to a notice dated January 31. This led Bybit to pause its operations in India on January 12, restricting users from opening new crypto or fiat trades while allowing withdrawals to continue.
Since March 2023, India has mandated all cryptocurrency exchanges, including offshore platforms, to register with the FIU and adhere to PMLA requirements. These include strict reporting and record-keeping obligations, with non-compliance resulting in enforcement actions.
Bybit is not the only crypto firm to face regulatory action in India. Last year, Binance settled a fine of approximately INR 18.82 crore ($2.25 million), while KuCoin paid around INR 34.5 lakh ($41,000) to resume operations.
As part of its broader compliance efforts, Bybit has applied for a Virtual Digital Asset Service Provider license, submitting its application on June 26, 2024. Additionally, the company is collaborating with the Bharat Web3 Association to promote Web3 adoption in India and has launched educational initiatives through partnerships with blockchain societies at premier institutions like IIT Delhi and IIT Kharagpur.
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