Bybit, a popular crypto currency exchange operating in India, has announced a temporary suspension of its services in the country due to regulatory challenges. The company has assured users that this transitional phase will be brief and that services will resume soon.
Bybit Suspends Operations in India
Dubai-based Bybit has confirmed that Indian users will no longer be able to initiate new trades or access platform features. However, withdrawal services will remain unaffected. The decision is rooted in the exchange’s efforts to comply with India’s legal regulations.
In 2023, India mandated cryptocurrency companies to register with the Financial Intelligence Unit (FIU) under the Prevention of Money Laundering Act (PMLA). These regulations introduced new obligations, including customer verification and compliance procedures. Authorities also emphasized that offshore exchanges must adhere to these rules and warned of penalties for non-compliance.
Bybit has stated its commitment to swiftly completing the necessary procedures to achieve compliance and has promised to restore full services for Indian users once the process is finalized.
India’s Regulatory Moves in 2024
In 2024, 28 Virtual Digital Asset (VDA) providers or crypto service operators in India successfully registered with the country’s Financial Intelligence Unit (FIU), according to a written response presented by Indian Finance Minister Pankaj Chaudhary in the Parliament’s lower house.
Since March, the Ministry of Finance has mandated crypto companies to register with the FIU and comply with PMLA provisions, including customer due diligence and identity verification requirements. This has made procedures like Know Your Customer (KYC) checks a legal necessity for crypto firms operating in India.
Additionally, the ministry has extended its reach to offshore cryptocurrency exchanges, requiring them to adhere to the same regulations as local operators when serving the Indian market. Non-compliance could result in enforcement actions under the PMLA. Among domestic platforms, major players like CoinDCX, WazirX, and CoinSwitch are registered with the FIU. However, it is notable that none of the 28 registered entities are offshore exchanges.
Increasing Transparency in the Indian Crypto Sector
India’s recent regulatory push reflects its determination to enhance transparency in the crypto market. By aligning with legal and regulatory frameworks, crypto companies are contributing to the sector’s growth. However, monitoring the compliance of offshore exchanges remains crucial.
Kriptokoin.com continues to cover updates on cryptocurrency regulations in Turkey and beyond in this article.
