Bybit Temporarily Halts Crypto Trading in India Amid Regulatory Challenges

Bybit, a leading global cryptocurrency exchange, has announced a temporary halt to its trading services in India due to evolving regulatory requirements.

The suspension, set to begin on January 12, will affect trading, account registrations, and order placements, though users can still withdraw funds without restrictions.

The exchange is working to finalize its registration as a Virtual Digital Asset Service Provider in India, a process it expects to complete soon. Bybit emphasized that the pause is temporary and aims to ensure compliance with local regulations.

This move follows similar regulatory challenges Bybit has faced in other countries. In 2024, the exchange suspended operations in France while seeking a necessary license, and Japan’s financial regulators recently warned Bybit for operating without proper authorization.

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India’s tightening crypto regulations have created a challenging environment for exchanges. Authorities recently uncovered $97 million in unpaid taxes from platforms like Binance and WazirX, while also expressing support for banning private cryptocurrencies in favor of promoting Central Bank Digital Currencies (CBDCs).

Despite these hurdles, India remains a key player in the global crypto space, ranking among the top 10 countries in the 2024 Global Crypto Adoption Index. Bybit’s temporary exit reflects the complexities of navigating this regulatory landscape while acknowledging the region’s growing appetite for digital assets.

Kostadin Dimitrov