Bybit Suspends Cryptocurrency Trading Services in India to Adhere to Updated Regulations

• Bybit halts cryptocurrency transactions in India from Jan 12 in compliance with national laws.
• Service limitations are implemented for Bybit’s Indian clientele as the company awaits approval for FIU registration.
• The trading interruption at Bybit aligns with India’s increasing vigilance on cryptocurrency trading platforms.

Bybit, a prominent cryptocurrency exchange, is pausing its trading operations for users in India to adapt to new regulatory requirements. The halt is scheduled to commence at 8:00 a.m. UTC on January 12, 2025, in accordance with Indian legal standards.

Operational Constraints and Service Notices for Indian Customers

Bybit’s services will be curtailed for Indian customers. A range of offerings will be put on hold, including cryptocurrency transactions, the creation of new accounts, and new orders for their trading products. Starting from January 13, 2025, peer-to-peer trading will not feature INR trades, and trading automation tools will be deactivated. Copy-trading arrangements will be similarly dissolved.

The platform will enable “close-only” mode for existing derivative positions, allowing traders to exit but preventing them from creating new positions or altering current ones. Importantly, Bybit has confirmed that withdrawals will remain unaffected, assuring that customer funds can still be retrieved during the trading halt.

Bybit remains dedicated to complying with Indian laws and aims to conclude the process of becoming a registered Virtual Digital Asset Service Provider (VASP) with India’s Financial Intelligence Unit in the forthcoming weeks.

Encountering Regulatory Obstacles

Bybit’s services have been interrupted in several regions due to regulatory complications. Notably, the exchange ceased activities in France in August 2024 following regulatory demands, and it intends to pursue necessary licenses to reinstate its services there. In a similar vein, Bybit withdrew from the Canadian market in May 2023 and halted its UK operations by September 2023. Most recently, after concerns of inadequate registration were raised, Bybit was directed to exit the Malaysian market in December 2024 and duly complied.

Dedication to Compliant Operations

Bybit reassures its user base of its intent to maintain active dialogue with regulatory bodies to ensure full compliance with the shifting international rules. The company is optimistic about resuming full operations in India upon successful completion of its Financial Intelligence Unit registration.

The steps undertaken by Bybit are a reflection of its ongoing efforts to navigate through the regulatory environment and to manage the concerns of regulatory authorities while it maintains its position as a primary cryptocurrency trading venue. While the trading pause may be temporary, it serves as an indicator of the global trend of increasing regulatory scrutiny faced by cryptocurrency exchanges.