Nikolas Sargeant
Cryptocurrency exchange ByBit has resumed operations in India after officially registering with the country’s Financial Intelligence Unit (FIU). The Dubai-based exchange has worked closely with the FIU to address compliance concerns and align with India's regulatory framework. As part of this process, ByBit has settled a fine of approximately INR 9.27 crore (around $1.06 million) imposed by the Indian Ministry of Finance for failing to secure the necessary FIU registration earlier.
ByBit's registration with the FIU ensures the company’s compliance with India’s Prevention of Money Laundering Act (PMLA), which mandates that all cryptocurrency exchanges, including offshore platforms, adhere to strict Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) measures. Since March 2023, crypto exchanges operating in India have been required to register with the FIU and maintain detailed reporting and record-keeping practices. ByBit’s non-compliance led to its temporary suspension in India in January, with users unable to initiate new trades, though withdrawals were unaffected.
In addition to paying the fine, ByBit is working towards obtaining a Virtual Digital Asset Service Provider license, which it applied for in June 2024. This move is part of its broader efforts to comply with Indian regulations and expand its presence in the country. The company is also collaborating with local blockchain advocacy groups, including the Bharat Web3 Association, and has launched educational initiatives in partnership with leading universities such as IIT Delhi and IIT Kharagpur.
ByBit’s settlement of the fine and registration with the FIU comes as part of an ongoing trend of exchanges complying with India's stringent regulatory measures. Last year, other major platforms like Binance and KuCoin also faced fines before resuming their operations.
