In a statement, cryptocurrency exchange Bybit said that it would temporarily cease its services for its consumers in India beginning on Sunday.
According to the firm, it is possible that it will be back up within a few weeks, provided that the documentation is completed in a timely manner.
The cryptocurrency exchange Bybit has announced that it would temporarily cease its services for its consumers in India as a reaction to the regulations that are currently in place in the nation.
On Sunday, the corporation with its headquarters in Dubai plans to make it impossible for its clients in India to access items or start new transactions on the platform.
On Friday, the business said in a blog post that the lone exception would be withdrawals.
It is possible that the halt will become temporary.
“We expect to secure in the coming weeks,” Bybit added, referring to the fact that it is now working to finish its registration as a Virtual Digital Asset Service Provider in accordance with the laws of India.
“We are committed to resuming full service as soon as we have completed our registration process with the FIU,” the organization said.
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A mandate was issued by India in March 2023 requiring cryptocurrency firms to register with the Financial Intelligence Unit (FIU), which is responsible for addressing issues related to the prevention of money laundering.
Verifying consumers was one of the additional procedures that providers were required to follow with in order to comply with the Prevention of Money Laundering Act (PMLA).
CoinDesk was informed by India’s Ministry of Finance that the laws for offshore exchanges were applicable, and that appropriate action would be taken against off-shore platforms that did not comply with the requirements.
Bybit was contacted by CoinDesk in an effort to get a comment.
Regulatory Developments
According to Bybit, the decision was made “in response to recent developments from Indian regulators and in continuation of restrictions that were successfully implemented in the past.”
While the company was continuing to work with India’s financial authority to conclude its registration as a Virtual Digital Asset Service Provider in the nation, the company stressed that it was taking the precaution.
Under the Prevention of Money Laundering Act, the Indian government has required that all VDA service providers operating in India, including offshore organizations servicing Indian consumers, must register with the country’s Financial Intelligence Unit.
This regulation has been in effect since March 2023.
A statement was made by the cryptocurrency exchange stating that it is dedicated to restarting services as soon as the registration process is finished, which it anticipates will be completed “in the coming weeks.”
There have been previous instances in which Bybit has been confronted with regulatory problems in certain nations.
In May of 2023, it followed Binance’s lead and left the Canadian market. Subsequently, in September of the same year, it ceased operations in the United Kingdom.
It was in August of 2024 that the corporation decided to discontinue selling its goods in France.
The Malaysian Securities Commission made the announcement in December of last year that it will be taking enforcement action against Bybit for running an exchange without the appropriate registration.