Key Insights
- The global crypto exchange Bybit has temporarily halted trading, new account openings, and order placements in India due to regulatory developments, effective January 12.
- Bybit is working to secure a full operational license from India’s Financial Intelligence Unit (FIU) and expects approval in the coming weeks.
New Delhi – (MarketsXplora) Bybit, a global cryptocurrency exchange, has announced a temporary suspension of its trading services in India, citing regulatory developments as the reason for its decision. The move, which takes effect on January 12 at 8:00 am UTC, will see Bybit restrict several services, including cryptocurrency trading, new account openings, and the ability to place orders on other exchange products.
The exchange stated that the decision aligns with its commitment to adhering to all applicable rules and regulations. In a January 10 announcement, Bybit emphasized its dedication to regulatory compliance, saying:
“Due to recent developments from Indian regulators and in continuation of previously implemented restrictions […] Indian users will temporarily be unable to open new trades or access any products on the Bybit platform.”
Despite the suspension of trading services, the company confirmed that user fund withdrawals remain unaffected. Existing trading positions will also be placed under certain restrictions, with derivatives positions moved to Close-Only mode, meaning traders will not be able to add or modify positions but can still close them.
Global Regulatory Challenges
The suspension in India comes as Bybit continues to face regulatory scrutiny in multiple jurisdictions. The exchange previously halted operations in France in August 2024 due to regulatory pressure, stating that it is actively working toward obtaining a license to resume business in the country.
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Bybit also exited the Canadian market in May 2023, suspended services in the UK in September 2023, and ceased operations in Malaysia following enforcement action by the country’s securities regulator in December 2024.
The Malaysian regulator had specifically directed Bybit CEO Ben Zhou to ensure compliance with its directives, and as of December 27, the company was confirmed to have met the regulatory requirements.
In India, Bybit is pursuing a full operational license from the country’s Financial Intelligence Unit (FIU), according to Vikas Gupta, country manager at Bybit India. The company has been actively working toward completing the registration process with the FIU to secure regulatory approval.
“At Bybit, we are committed to aligning with local regulatory requirements and have been actively working toward securing the complete registration process with the FIU to operate in India,” Gupta said.
Bybit remains optimistic about its return to the Indian market, stating that it expects to obtain its license “in the coming weeks.” In the meantime, the exchange reaffirmed its commitment to collaborating with Indian regulators to finalize its registration as a virtual digital asset service provider.