Bybit Restricts Indian Services Amid Regulatory Compliance

Bybit, a popular cryptocurrency exchange, will temporarily restrict its services for Indian users starting January 12. The move is part of the platform’s efforts to complete its registration as a Virtual Digital Asset Service Provider (VASP) with India’s Financial Intelligence Unit.

Implications for Indian Users

During this period, Indian users will be unable to open new crypto or fiat trades, access trading products, or participate in campaigns. Existing derivatives positions will be set to “close-only” mode, allowing users to close their positions but preventing them from making modifications or adding to them.

Additionally, peer-to-peer trading ads in INR will be removed, copy trading relationships will be canceled, and trading bots will be deactivated by January 13. However, withdrawals will remain unaffected.

Background and Regulatory Issues

The move is a response to “recent developments from Indian regulators” and follows earlier restrictions. Since March 2023, the Indian government has required all VASP operators, including offshore exchanges, to register under the Prevention of Money Laundering Act.

This isn’t the first regulatory hurdle for Bybit. The exchange has faced similar challenges in other countries, including:

  • Exiting Canada in May 2023
  • Suspending services in the UK by September 2023
  • Ceasing operations in France in August 2024 amid licensing challenges
  • Facing enforcement action from Malaysia’s securities regulator in December 2024 for operating without proper registration

Bybit’s Commitment to Regulatory Compliance

We are committed to resuming full service as soon as we have completed our registration process with the FIU.

Bybit has expressed its commitment to resuming full services in India once the registration process is complete. The company expects this to happen in the coming weeks and says it aims to align its operations with evolving regulatory frameworks.

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