Bybit Halts Crypto Trading in India to Comply with New Regulations

• Bybit suspends crypto trading in India starting Jan 12 to comply with local regulations.
• Indian users face restricted services on Bybit as it awaits FIU registration approval.
• Bybit’s suspension follows a broader regulatory crackdown on crypto exchanges in India.

One of the leading crypto trading platforms, Bybit, has temporarily suspended trading services in India due to ongoing regulatory changes. The suspension will take effect on January 12, 2025, at 8:00 a.m. UTC, as part of the company’s measures to abide by Indian regulations.

Trading Restrictions and Service Updates for Indian Users

Bybit offerings will temporarily be limited for its Indian users. Some of the services suspended are cryptocurrency trading, opening new accounts, and placing new orders on its trading products. To enhance transparency and compliance, the platform will disable INR listings for peer-to-peer trading and halt trading bots by January 13, 2025. These changes will also include the cancellation of copy-trading relationships.

Users ‘ existing derivatives positions will be placed in “close-only” mode, allowing them to manage and close their positions but not open new ones or modify the existing ones. However, Bybit was clear that withdrawals would not be impacted by the suspension, meaning users’ funds would remain accessible during the suspension.

The company reiterated its commitment to abiding by Indian regulations. It revealed its intention to complete the Virtual Digital Asset Service Provider (VASP) registration with India’s Financial Intelligence Unit in the next few weeks.

Regulatory Challenges 

This suspension in India is the latest regulatory issue Bybit has encountered. The exchange shut its operations in France in August 2024 under pressure from the French authorities. The platform also stressed that it continues to work to obtain the licenses it needs to resume its services in the country.

Likewise, the crypto trading platform left Canada in May 2023 and stopped its operations in the United Kingdom by September 2023. More recently, due to improper registration, the Malaysian Securities Commission asked Bybit to leave in December 2024. Bybit complied with the directive shortly after its issuance.

Commitment to Regulatory Compliance

Bybit assured its clients that it would continue engaging the relevant authorities to ensure the platform complied with evolving global policies and regulations. The company also informed Indian users that once it has registered with the Financial Intelligence Unit, it plans to open all of its services. 

The actions of Bybit demonstrate the further steps in striving to operate in the regulatory landscape and seek to address the regulators’ concerns to remain one of the leading cryptocurrency trading sites. Although the suspension is for a short period, it serves as a sign that cryptocurrency exchanges around the globe are facing regulatory pressure.