Dubai-based cryptocurrency exchange Bybit, the world’s second-largest centralized exchange by daily trading volume, has announced a temporary suspension of its operations in India. This decision comes in response to tightening regulatory requirements in the region. Effective January 12, 2025, at 8:00 AM UTC, Indian users will no longer be able to trade, place orders, or access Bybit’s wide range of products.
What’s Changing for Bybit Users?
The suspension encompasses all trading activities, including crypto and fiat trading, copy trading, trading bots, and peer-to-peer (P2P) ads involving INR. Key measures include:
- Trading Restrictions: Existing positions will shift to close-only mode, and deposits in fiat or crypto will halt.
- Termination of Copy Trading and Bots: All master-follower relationships and bots will end by January 13, 2025.
- P2P Ads and Card Transactions: INR-based ads will be removed, and Bybit card transactions will cease.
Despite the shutdown, users can withdraw their funds without restrictions.
The Regulatory Backdrop
Bybit’s decision reflects its commitment to complying with India’s stringent crypto regulations, which mandate all virtual digital asset (VDA) platforms to register as reporting entities under the Prevention of Money Laundering Act (PMLA). The Financial Intelligence Unit (FIU) oversees these platforms and ensures compliance.
Bybit’s spokesperson stated, “This is a temporary measure while we secure our VDA service provider registration with India’s FIU.” The platform expects to finalize the process and resume operations soon.
A Familiar Struggle
This isn’t Bybit’s first regulatory hurdle. The exchange ceased operations in France in 2024 and faced warnings in Japan. India, meanwhile, has increased scrutiny of crypto platforms, previously banning non-compliant exchanges and imposing heavy penalties on Binance and others.
The Future of Crypto in India
While Bybit’s suspension is a setback, India remains among the top 10 countries in the Global Crypto Adoption Index. With the government promoting Central Bank Digital Currencies (CBDCs) as a safer alternative, private crypto operators face a challenging landscape but also a growing market.
Bybit’s temporary retreat underscores the balancing act between regulatory compliance and market opportunity in one of the world’s most dynamic crypto markets.
