Bybit fined $1M by India’s financial regulator over compliance violations
Update, 11:12 am UTC: This article has been updated with information throughout. Bybit crypto exchange has been fined by India’s financial regulator following previous compliance issues that forced it to halt operations in the country.Bybit, the world’s second-largest crypto exchange by trading volume, was given a 9.27 crore rupees fine ($1.06 million) by India’s Financial Intelligence Unit (FIU), according to a press release from the Indian Ministry of Finance. The fine was imposed for allegedly violating the Prevention of Money Laundering Act (PMLA), according to official documents published on Jan. 31,“As a Virtual Digital Asset Service Provider (VDA SP), Bybit is classified as a ‘reporting entity’ under Section 2(1)(WA) of the PMLA,” the report stated, adding:“Bybit kept expanding its services in the Indian market without securing mandatory registration with the FIU-IND. The persistent and continuous non-compliance caused FIU-IND to block their websites to stop operations under the Information Technology Act, 2000 through the Ministry of Electronics and Communication Technology (MEITY).”The penalty was imposed weeks after Bybit suspended its services in India, citing “recent developments with Indian regulators” and compliance concerns. Following the suspension of services, Bybit’s country manager for India, Vikas Gupta, told Cointelegraph that they expect the full operations license “in the coming weeks.”Bybit is pursuing a Virtual Digital Asset Service Provider (VDASP) license in India, to which it completed the registration application on June 26, 2024.Cointelegraph previously reported that Bybit had successfully registered with India’s FIU and settled the fine, citing a Bybit press release shared with Cointelegraph. However, a spokesperson for Bybit later retracted the information.Cointelegraph has approached India’s FIU to clarify the status of the penalty payment and the exchange’s registration.Cointelegraph has reached out to Bybit for comment on the fine and its current compliance status with the FIU.