Dubai-based cryptocurrency exchange Bybit has officially registered with India’s Financial Intelligence Unit (FIU-IND) after paying a hefty fine of ₹92.7 million ($1 million). The penalty was imposed due to Bybit operating without authorization, violating India’s Prevention of Money Laundering Act (PMLA).

Suspension and Compliance Efforts

In January 2025, Bybit halted services for Indian users while working toward regulatory compliance. Despite the suspension, users could access their funds but were restricted from opening new trades. The fine was part of a broader crackdown on offshore exchanges that failed to register with FIU-IND under India’s tightened anti-money laundering (AML) framework.

Regulatory Approval and Market Re-Entry

Bybit has now successfully settled its penalty and obtained registration, marking a significant step toward full compliance. The exchange has also applied for a Virtual Digital Asset Service Provider (VDA SP) license, pending approval since July 2024. Full operational clearance is expected in the coming weeks, allowing Bybit to resume unrestricted services in India.

India’s Growing Crypto Regulations

India has been tightening its grip on offshore crypto exchanges since March 2023, requiring mandatory FIU registration to combat money laundering and terrorism financing. Exchanges like Binance, KuCoin, and Kraken faced similar enforcement actions before complying. Bybit’s registration aligns with India’s efforts to create a more regulated crypto environment.

With compliance now in place, Bybit is set to rebuild its presence in India, ensuring adherence to local financial laws while offering its services to traders once again.