Bybit Fined Over $1 Million for Regulatory Non-Compliance

Bybit, the second-largest crypto exchange globally, has faced a fine from India's financial watchdog over non-compliance with local regulations.

The Financial Intelligence Unit (FIU) of India imposed a penalty of 9.27 crore rupees (approximately $1.06 million) after the exchange violated the Prevention of Money Laundering Act (PMLA).

According to the Ministry of Finance’s official statement, Bybit, as a Virtual Digital Asset Service Provider (VDA SP), was required to register with the FIU-IND but continued to expand its services without fulfilling this obligation.

As a result of the persistent non-compliance, the FIU blocked Bybit’s websites under the Information Technology Act, 2000, halting the exchange’s operations in India.

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This fine comes after Bybit paused its services in the country, citing regulatory concerns. The exchange’s India head, Vikas Gupta, expressed hope for securing an operational license soon.

Bybit had applied for a Virtual Digital Asset Service Provider (VDASP) license in June 2024 and continues to work towards compliance. While there were initial reports suggesting that Bybit had registered with the FIU, the exchange later retracted those claims. Both Bybit and the FIU have been contacted for clarification regarding the fine and the exchange’s compliance status.

Alexander Stefanov