Bybit resumes full operations in India following regulatory compliance, including settling a $1.06 million fine and registering with the Financial Intelligence Unit (FIU).

Executive Summary

Bybit has restored full access to its app and is in the process of restoring its website for users in India, after complying with regulatory requirements and registering with the Financial Intelligence Unit (FIU). This move follows a temporary restriction of services in India as Bybit sought to finalize its registration as a Virtual Digital Asset Service Provider. The exchange also settled a fine of ₹9,27,00,00 ($1.06 million) for prior non-compliance.

The Event in Detail

Bybit has restored full app access in India on both the App Store and Google Play. The exchange's website is undergoing a phased restoration and is expected to be fully functional this week. Bybit had temporarily restricted its services in India on January 12 to finalize its registration as a Virtual Digital Asset Service Provider. Operations were initially re-established on February 25, but complete functionality of both the website and app is now returning.

Bybit began its regulatory process early in the year, registering with the Financial Intelligence Unit as a reporting entity in January 2025. 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.

In addition to the registration, Bybit 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).

Market Implications

Bybit's re-entry into the Indian market could lead to increased adoption of its platform in India. This move also signals a positive regulatory development for Bybit, potentially increasing its trading volume and user base. The resumption of services includes buying and selling cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), and Ripple's XRP, and its derivatives market is open for trading.

CEO of Bybit, Ben Zhou, stated that India is among the most promising digital asset markets globally.

Expert Commentary

Bybit cofounder and CEO Ben Zhou stated, "India is among the most promising digital asset markets globally. We are excited to resume normal business and reaffirm our devotion to delivering Indian users with secure, transparent, and world-class cryptocurrency experiences."

Broader Context

This development occurs amid India's mandate for all crypto exchanges to register with the FIU, following last year's crackdown on several major platforms. Bybit formally submitted its application with the appropriate authorities on June 26, 2024, and is currently awaiting their decisions for a Virtual Digital Asset Service Provider (VDASP) license in India. The Indian government has been taking a measured approach, aiming to balance innovation with investor protection and financial stability. By requiring crypto exchanges to register, the FIU aims to bring greater transparency and accountability to the sector.