Bybit Temporarily Restricts Crypto Services in India Due to Regulatory Developments
Cryptocurrency exchange Bybit announced on Friday that it will temporarily limit its services for users in India starting at 8 a.m. UTC on January 12. The suspension affects new crypto and fiat trading, product access, and peer-to-peer trading, while withdrawals remain available. This move comes in response to recent regulatory changes by Indian authorities.
Service Restrictions and Implementation
From January 12, Indian customers will be unable to open new cryptocurrency and fiat trades or access other products on the Bybit platform. Existing derivatives positions will enter a “close-only” mode, allowing users to close their positions but not modify or add to them. Additionally, peer-to-peer trading advertisements will be removed, and transactions using the Bybit Card will be restricted. By January 13, all copy trading relationships will be canceled, and trading bots will be terminated before 5 a.m. UTC.
Regulatory Developments in India
Bybit cited recent developments from Indian regulators as the primary reason for the temporary restrictions. The company is actively working with India’s financial regulator to finalize its registration as a Virtual Digital Asset Service Provider (VDASP) in the country. Since March 2023, the Indian government has required all VDASP operating in India, including offshore entities serving Indian users, to register with the Financial Intelligence Unit under the Prevention of Money Laundering Act.
Bybit expressed its commitment to resuming full services in India once the registration process is complete, which it anticipates securing within the coming weeks.
Bybit’s History with Regulatory Challenges
This is not the first time Bybit has faced regulatory hurdles in various jurisdictions. In May 2023, the exchange exited the Canadian market, followed by a suspension of services in the United Kingdom in September of the same year. By August 2024, Bybit ceased offering products in France. Additionally, in December, Malaysia’s securities regulator took enforcement action against Bybit for operating an exchange without proper registration.
Looking Ahead
Bybit’s temporary restriction of services in India underscores the evolving regulatory landscape for cryptocurrency exchanges globally. As governments continue to develop and implement regulations for digital assets, exchanges like Bybit must navigate these changes to ensure compliance and maintain their operations within different markets.