Key Takeaways:
- Bybit fined $1M by India’s Financial Intelligence Unit (FIU) for violating the Prevention of Money Laundering Act (PMLA).
- Regulatory crackdown led to Bybit halting operations in India after failing to secure mandatory registration.
- Website blocked under India’s IT Act as authorities enforce compliance with AML regulations.
India’s Financial Intelligence Unit (FIU) has fined cryptocurrency exchange Bybit ₹9.27 crore ($1.06 million) for violating compliance regulations under the Prevention of Money Laundering Act (PMLA).
The penalty stems from Bybit’s failure to register as a Virtual Digital Asset Service Provider (VDA SP), despite its legal obligation as a ‘reporting entity’ under Section 2(1)(WA) of the PMLA.
JUST IN: 🇮🇳Bybit registers with FIU India after paying ₹9.27 Cr penalty pic.twitter.com/kOwl6LgEH7
— Crypto India (@CryptooIndia) February 5, 2025
Bybit continued operating and expanding in India without the necessary registration, prompting regulators to take action.
The Ministry of Electronics and Information Technology (MEITY) assisted in blocking Bybit’s website under the Information Technology Act, 2000.
This enforcement is part of India’s broader crackdown on unregistered crypto platforms to ensure compliance with anti-money laundering (AML) laws.
Breaking 🚨🚨 @Bybit_Official has registered with India’s financial regulator.
— Wise Advice (@wiseadvicesumit) February 5, 2025
It has settled the monetary fine, and will get a full operations license in the coming weeks.
The fine comes shortly after Bybit announced the suspension of its services in India, citing regulatory uncertainties and compliance challenges.
This development highlights India’s stricter stance on cryptocurrency regulations, following similar actions against other exchanges.
The FIU’s decision reinforces the government’s commitment to tightening oversight in the digital asset sector, ensuring that all market participants adhere to AML and financial security guidelines.
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