Bybit makes peace in India, pays $1m Finance Ministry fine, agrees to full adherence to law

Source Cryptopolitan

Crypto exchange Bybit has registered with the Financial Intelligence Unit-India (FIU-IND). That agency, part of the Indian Finance Ministry, had ordered Bybit’s website to be blocked in the country and imposed a fine after finding in January that the exchange violated anti-money laundering rules. 

The FIU-IND fined Bybit 92.7 rupees (around $1.1 million) on January 31, saying the exchange engaged in “persistent and continuous” violations of the 2005 Prevention of Money Laundering (Maintenance of Records) Rules. As a Virtual Digital Asset Service Provider (VDASP), the exchange had reporting obligations, but it had expanded its services in India without registering the new offerings with the FIU-IND.

Bybit’s suspension is part of a larger crackdown

Bybit suspended all services to Indian users except withdrawals on Jan. 12, citing new and continuing regulatory issues. The suspension even applied to Bybit payment cards in India. The exchange said the suspension would be temporary.

The exchange announced its payment of the fine and FIU-IND registration on Feb. 6. It noted that it had applied to the agency to become a registered VDASP in India in June 2024.

The FIU-IND cracked down on foreign crypto exchanges in December 2023, alleging they did not observe the agency’s regulations. The exchanges affected included Binance, which was shut out of the country until June, when it paid a $2.2 million fine to the FIU-IND. 

India’s approach to crypto is evolving

The Indian government has shown little enthusiasm for cryptocurrency, imposing strict regulations on the industry and high taxes on profits from digital assets. Part of exchange’s reporting obligations involve taxation. 

Crypto exchanges themselves are liable to taxation as well. In December, the Finance Ministry declared that domestic and foreign crypto exchanges owe an aggregate 8.24 billion rupees in back taxes. Binance owed the lion’s share of back taxes.

A rift within the government came to light in May, when the Securities and Exchange Board of India recommended that government agencies regulate crypto. That position contrasts with the central bank view that retail crypto is a macroeconomic risk. 

In a February interview with Reuters, Economic Affairs Secretary Ajay Seth said India was reconsidering its stance on cryptocurrency in light of world trends. In any case, India led the world in cryptocurrency adoptionin 2023 and 2024, according to the annual Chainalysis survey.

Cryptopolitan Academy: Are You Making These Web3 Resume Mistakes? - Find Out Here

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Bitcoin Outlook 2025As the Bitcoin market continues to mature, its 2025 outlook appears highly favourable, driven by institutional adoption and regulatory developments.
Author  TradingKey
Jan 23, Thu
As the Bitcoin market continues to mature, its 2025 outlook appears highly favourable, driven by institutional adoption and regulatory developments.
placeholder
Solana Price Forecast: SOL flashes bearish signals, risks double-digit crashSolana (SOL) price shows early signs of a potential breakdown as it trades lower at $165.40 on Monday. SOL is approaching a key support level that could determine its next major move. Technical indicators flash red, and bearish sentiment intensifies, with short positions hitting a monthly high.
Author  FXStreet
May 19, Mon
Solana (SOL) price shows early signs of a potential breakdown as it trades lower at $165.40 on Monday. SOL is approaching a key support level that could determine its next major move. Technical indicators flash red, and bearish sentiment intensifies, with short positions hitting a monthly high.
placeholder
XRP ETF approval chances soar to 83% despite SEC RoadblocksThe odds of the approved XRP ETF have surged to 83% amid growing institutional demand.
Author  Cryptopolitan
May 26, Mon
The odds of the approved XRP ETF have surged to 83% amid growing institutional demand.
placeholder
Ethereum Price Faces Pressure: Can It Sustain Its Recent Rally?Ethereum price found support at $2,460 and started a fresh increase. ETH is now struggling and might drop again below the $2,500 support.
Author  NewsBTC
May 27, Tue
Ethereum price found support at $2,460 and started a fresh increase. ETH is now struggling and might drop again below the $2,500 support.
placeholder
Dogecoin Follows Bearish June Trend With over 4% Losses – Is The Worst Over?The month of June has been historically bearish for the Dogecoin price, and so far, June 2025 is following the same trend. With just a little over a week into the month, the Dogecoin price has already seen a decline of over 4%, suggesting it is sticking to the established trend. If this is the […]
Author  Bitcoinist
Jun 09, Mon
The month of June has been historically bearish for the Dogecoin price, and so far, June 2025 is following the same trend. With just a little over a week into the month, the Dogecoin price has already seen a decline of over 4%, suggesting it is sticking to the established trend. If this is the […]
goTop
quote