Bybit Halts Cryptocurrency Transactions in India Due to Increasing Regulatory Constraints

In response to the evolving regulatory environment, the international cryptocurrency exchange Bybit has announced a temporary suspension of its services in India, starting from 8 a.m. UTC on January 12.

The suspension means Indian clients will be unable to engage in new transactions or utilize specific offerings provided by the exchange. However, the facility for fund withdrawals will continue without interruption. In the meantime, any open derivatives positions held by users will only be available for closing operations.

Alignment with Indian Regulatory Measures

Bybit’s decision to suspend services is directly correlated with newly established regulatory measures in India. The exchange is earnestly endeavoring to adhere to every legal requirement.

Efforts are underway to register Bybit as a sanctioned entity under the Virtual Digital Asset Service Provider category with hopes of completing the process in the near future.

Indian legal stipulations necessitate crypto exchanges to be registered with the Financial Intelligence Unit to comply with anti-money laundering statutes. This instance is among a series that Bybit has encountered with regulatory compliance.

In the past, Bybit has similarly concluded its operations in France amid local regulatory pressures, and halted its services in Malaysia per guidelines from the Securities Commission. The exchange withdrew from the Canadian market in May 2023 and ceased its UK services later that same year.

Despite facing these regulatory headwinds, Bybit is intent on reinstating its full range of services in India upon securing the necessary regulatory approval. This development is reflective of the growing trend of regulatory oversight within cryptocurrency markets globally, with the aim of enforcing adherence to legislative norms and safeguarding investors’ interests.