Cryptocurrency exchange ByBit has taken a significant step toward reinstating its services in India by securing registration with the Financial Intelligence Unit (FIU). This development comes after a period of regulatory scrutiny that temporarily suspended its operations in the country.
The exchange expects to receive full authorization soon, allowing it to reintroduce its platform to Indian users. ByBit had previously faced regulatory hurdles restricting users from making new trades and participating in promotional activities.
Despite the suspension, users were allowed to withdraw funds, ensuring they retained access to their assets.
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ByBit’s Compliance Measures
ByBit has accepted the responsibility to follow the Prevention of Money Laundering Act (PMLA) 2005 by joining the FIU register. The reporting status under these regulations makes ByBit responsible for following Virtual Digital Asset Service Provider AML regulations.
The ByBit platform chose to comply after regulatory bodies started intensified oversight leading them to shut down their India services previously. Exchange CEO Ben Zhou considers this registration a vital step for the business because it provides legal operation and builds confidence within its Indian customer group.
Financial Penalty and Regulatory Crackdown
ByBit encountered a $1.06 million financial penalty from the FIU because it operated without fulfilling the mandatory registration criteria on January 31. The exchange disrupted several statutory provisions of PMLA when it delivered services despite lacking official authorization.
As part of the enforcement process, authorities blocked ByBit’s website under the Information Technology Act 2000 through the Ministry of Electronics and Information Technology (MEITY).
This action was part of a larger effort to regulate digital asset platforms operating in India without compliance.
A series of Anti-Money Laundering regulations went into effect in March 2023 under the supervision of the FIU to enforce cryptocurrency exchange compliance in the Indian market. ByBit faced penalties and temporary restrictions because it did not register on time but demonstrated progress in following compliance measures.
Challenges in Other Markets
ByBit has faced regulatory pressures in multiple countries, including the United Kingdom, Canada, France, and Malaysia. The exchange ceased operations in several regions or modified its services to meet legal requirements.
These challenges reflect a growing trend of governments worldwide tightening controls over cryptocurrency exchanges to prevent illicit activities. ByBit’s compliance efforts in India suggest a broader strategy to navigate evolving regulatory landscapes in multiple jurisdictions.
Conclusion
ByBit’s registration with the FIU marks a crucial step toward re-establishing its presence in India. The exchange is now awaiting further approvals to resume entire operations.
While past regulatory issues posed obstacles, the company’s efforts to comply with India’s financial laws indicate its intention to sustain a legitimate presence in the market. The coming weeks will determine how quickly ByBit can fully reinstate its services while meeting regulatory expectations.
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