Cryptocurrency exchange ByBit is set to resume its services in India after registering with the country’s Financial Intelligence Unit.
In a press release shared with crypto.news, ByBit said it is now registered with the FIU and compliant with and compliant with India’s Prevention of Money Laundering Act.
“We have been working diligently with the FIU-IND to address their concerns,” the firm wrote, adding, “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.”
As part of the registration process, the Dubai-headquartered firm has settled an inr 9.27 crore fine (roughly $1.06 million) imposed by the Indian Ministry of Finance. The penalty was issued after regulators flagged Bybit for operating in India without securing the necessary FIU registration.
According to a Jan. 31 notice from the ministry, ByBit’s “persistent and continuous non-compliance” prompted the Ministry of Electronics and Information Technology to block its website under the Information Technology Act of 2000.
India has made it mandatory for all crypto exchanges, including offshore platforms, to register with the FIU and comply with the PMLA since March 2023. Exchanges must follow strict reporting and record-keeping obligations under the law, and non-compliant entities are subject to enforcement actions.
Bybit initially paused operations in India on Jan. 12, alerting users that the move was in response to “recent developments from Indian regulators.” Users were restricted from opening new crypto or fiat trades, with only withdrawals remaining unaffected.
Last year, Binance settled a fine of approximately inr 18.82 crores ($2.25 million), while KuCoin paid around inr 34.5 lahks ($41,000) before resuming operations.
ByBit is also pursuing a Virtual Digital Asset Service Provider license, having submitted its application on June 26, 2024, as part of its broader efforts to align with Indian regulations.
Beyond compliance efforts, ByBit is actively engaging with the local blockchain advocacy group, the Bharat Web3 Association, to promote Web3 adoption in the country. It has also launched educational initiatives through partnerships with the blockchain societies of premiere universities like IIT Delhi and IIT Kharagpur, the release added.
