What You Need to Know

• Bybit has announced a temporary suspension of its services for users in India starting from Sunday.
• The platform aims to return to normal operations quickly, pending completion of necessary paperwork.

Bybit, a Dubai-based crypto exchange, has decided to pause its trading services for Indian users due to regulatory requirements in the country. Customers will not be able to open new trades or access products from the platform starting this Sunday. However, they will still be able to withdraw funds during this period.

The company has indicated that this disruption may be brief as it plans to secure its registration as a Virtual Digital Asset Service Provider under Indian law, which it expects to finalize in the coming weeks.

“We are committed to resuming full service as soon as we have completed our registration process with the FIU,” Bybit stated.

In March 2023, India mandated that crypto platforms register with the Financial Intelligence Unit (FIU) as part of an anti-money laundering initiative. This requirement includes customer verification under the Prevention of Money Laundering Act (PMLA).

India’s finance ministry stated last year that these regulations would also apply to offshore exchanges, with enforcement actions planned for those who do not comply.