Dubai-based cryptocurrency exchange Bybit has successfully registered with India’s Financial Intelligence Unit (FIU-IND) after paying a fine of ₹92.7 million ($1 million) for operating without authorization. This marks a significant step towards compliance with Indian regulations, allowing the exchange to resume services in the country.

Regulatory Roadblock and Suspension

In January 2025, Bybit halted its services in India following regulatory scrutiny. The Financial Intelligence Unit, responsible for combating money laundering, had mandated all crypto platforms serving Indian users to register under the Prevention of Money Laundering Act (PMLA), introduced in March 2023.

Bybit, despite being one of the leading exchanges globally in terms of trading volume, faced website blocks and operational restrictions in India due to non-compliance. While users could access their funds, new trades were restricted until the exchange settled the regulatory concerns.

Compliance and Reinstatement

Bybit has now resolved the compliance violations and successfully registered with FIU-IND, clearing its path to full operational reinstatement. In a statement, the company emphasized its commitment to adhering to India’s financial regulations and ensuring compliance with anti-money laundering (AML) laws.

CEO Ben Zhou took to social media platform X to confirm the development, calling it a positive step for Indian users. The exchange is now on track to receive its full operational license in the coming weeks, further solidifying its position in the Indian market.

Stricter Regulations for Crypto Exchanges

India has taken a tough stance on offshore crypto platforms, requiring them to register with FIU-IND before offering services to Indian users. Several exchanges, including Binance, KuCoin, and Kraken, faced similar regulatory hurdles in early 2023, leading to temporary suspensions before compliance was met.

Bybit has also applied for a Virtual Digital Asset Service Provider (VDA) license in July 2024, which is still awaiting approval. This step further aligns the exchange with India’s evolving crypto regulatory framework.

Future of Bybit in India

With its FIU-IND registration complete and a pending VDA license, Bybit is set for a compliant and legally secure return to the Indian market. The exchange’s proactive approach in resolving regulatory issues signals a growing acceptance of crypto within India’s structured financial system, paving the way for a more transparent and regulated crypto ecosystem.