- Bybit suspends Indian crypto trading from Jan 12 amid new regulations.
- Bybit pursues compliance, awaits Virtual Digital Asset Service Provider status.
- Bybit ensures uninterrupted withdrawals, halts trading services in India.
BYBIT, a global cryptocurrency exchange, will cease operations partially in India starting 12 January 2025, citing regulatory requirements. Some of the affected services include trading cryptocurrencies, account opening, and the functionality of placing an order through other exchange products.
The company ensured it was keen to operate within the recommended regulations by asserting its continuous process of seeking registration as a VDASP in India. This registration should be completed in the next weeks, after which Bybit intends to resume its operations.
Impact on Users in India
Bybit’s temporary suspension will restrict Indian users from initiating new trades or accessing several products on the platform. However, the exchange has assured that withdrawals will remain unaffected during this period. For users with existing derivatives positions, the platform will switch to a “Close-Only” mode, which permits users to close their positions but restricts any further modifications or new positions.
This action of Bybit is an indication of the platform’s compliance strategy wherein the firm ditched markets like France, Canada, and the UK for similar challenges. The firm has not relaxed in its effort to work with the financial regulators of the various countries in order to operate within the set legal frameworks.
Bybit’s Regulatory Navigation
Bybit’s decision underscores the complex regulatory landscape that global cryptocurrency exchanges navigate. Since March 2023, India’s financial regulatory authorities have required all virtual digital asset service providers, including those operating offshore, to register under the country’s Financial Intelligence Unit as part of the Prevention of Money Laundering Act.
The suspension is not Bybit’s first encounter with regulatory pressures. The platform previously ceased operations in France following the August 2024 regulatory demands and faced similar issues in Malaysia and the UK. Each instance reflects Bybit’s strategy to comply fully with legal standards while maintaining service integrity for its global user base.
