On January 12, 2025, Bybit halted most operations in India—blocking deposits, account openings, trading, P2P ads, and copy trading. Only withdrawals remained functional. This move came as the exchange was non-compliant with India’s anti-money laundering rules under the PMLA, lacking registration as a Virtual Digital Asset Service Provider (VDASP).
Registration & Fine (Feb 2025)
By February 5, Bybit officially registered with India’s Financial Intelligence Unit (FIU-IND) as a reporting entity and paid a regulatory fine of approximately ₹9.27 crore (USD 1.06 million).
Relaunch & Full Service Restoration (Feb 25, 2025)
On February 25, Bybit fully restored services for existing users—including trading, derivatives, and other products. Onboarding of new users began gradually the same day. Investing.com
At a Glance: Timeline
| Date | Event |
|---|---|
| Jan 12, 2025 | Services suspended amid compliance issues |
| Feb 5, 2025 | FIU registration completed; ₹9.27 cr fine paid |
| Feb 25, 2025 | Services fully restored and onboarding resumes |
Why It Matters
- Regulatory Compliance Wins: Bybit’s return emphasizes its commitment to operating within Indian regulations and navigating the evolving crypto framework.
- Market Re-entry: The eight-month comeback allows it to compete again in India’s rapidly expanding crypto market, where user adoption continues to rise.
- User Confidence Restored: Resuming access to trading and platform features rebuilds user trust, especially after the prior security breach and regulatory freeze.
Summary
Bybit’s relaunch in India marks a strategic comeback after an 8-month pause triggered by regulatory non-compliance. Thanks to its FIU registration and settlement of the ₹9.27 crore fine, the exchange has resumed full functionality for users as of February 25, 2025. This move underlines Bybit’s renewed regulatory alignment and re-engagement in one of its key markets.
