Bybit Fined $1.06M by India's FIU Over Compliance Violations

Bybit, the world’s second-largest crypto exchange by trading volume, has been fined 9.27 crore rupees ($1.06 million) by India’s Financial Intelligence Unit (FIU) for violating the Prevention of Money Laundering Act (PMLA). The penalty, announced on January 31, 2023, follows Bybit’s expansion into India without securing the required registration.

India’s Ministry of Finance classified Bybit as a "reporting entity" under the PMLA, requiring compliance with local regulations. Due to its unregistered operations, FIU-IND took enforcement measures, blocking Bybit’s website under the Information Technology Act, 2000, via the Ministry of Electronics and Communication Technology (MEITY). This led Bybit to suspend its services in India, citing regulatory challenges.

Bybit’s India country manager, Vikas Gupta, remains optimistic about obtaining an official operations license. The exchange applied for a Virtual Digital Asset Service Provider (VDASP) license on June 26, 2024. While Cointelegraph initially reported that Bybit had registered with the FIU and paid the fine, a company spokesperson later retracted the claim.

As regulatory scrutiny increases, Bybit’s compliance status remains uncertain. Cointelegraph has reached out to both Bybit and the FIU for clarification on the penalty payment and registration process.