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Bybit, one of the leading crypto exchanges globally, has been fined 9.27 crore rupees (approximately $1.06 million) by the Financial Intelligence Unit (FIU) of India. The penalty was levied due to violations of the Prevention of Money Laundering Act (PMLA), as stated in official documents released on January 31, 2023.
The crypto exchange, which ranks second in the world by trading volume, was categorized as a ’reporting entity’ under the PMLA, according to the Indian Ministry of Finance. The FIU’s action came after Bybit expanded its operations in India without obtaining the necessary registration mandated by the FIU-IND. This led to the FIU-IND blocking Bybit’s website under the Information Technology Act, 2000, through the Ministry of Electronics and Communication Technology (MEITY) to halt its operations.
The imposition of the fine follows Bybit’s decision to suspend its services in India. The suspension was attributed to "recent developments with Indian regulators" and concerns over compliance issues. Bybit’s country manager for India, Vikas Gupta, expressed optimism that the exchange would secure a full operations license in the near future.
In pursuit of legal compliance, Bybit had completed an application for a Virtual Digital Asset Service Provider (VDASP) license on June 26, 2024. Despite reports from Cointelegraph indicating that Bybit had registered with the FIU and settled the fine, a Bybit spokesperson later retracted these claims.
As the situation unfolds, Cointelegraph has sought clarification from India’s FIU on the status of the penalty payment and Bybit’s registration process. Additionally, Cointelegraph has contacted Bybit for a statement regarding the fine and its current standing with the FIU’s compliance requirements.
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