Cryptocurrency exchange Bybit has faced challenges in India, including service suspension and a substantial fine. Recent developments highlight the country’s evolving approaches to the crypto industry.
Bybit's Suspension and Fine
In January this year, FIU-IND fined Bybit 92.7 million rupees for repeated violations of anti-money laundering rules. The exchange temporarily suspended its services in India, except for withdrawals, due to regulatory difficulties. On February 6, Bybit announced the payment of the fine and its registration as a Virtual Digital Asset Service Provider (VDASP) in India.
Wider Crackdown on Crypto Exchanges
In December 2023, FIU-IND intensified measures against foreign cryptocurrency exchanges, accusing them of failing to comply with regulatory norms. Binance, another major exchange, was forced to pay a $2.2 million fine to resume operations in the country by June.
India's Evolving Crypto Approach
The Indian government maintains a tough stance towards cryptocurrencies, applying strict regulations and high taxes on profits from digital assets. While regulatory bodies like the Securities and Exchange Board of India suggest regulating the crypto industry, the central bank views retail cryptocurrencies as a macroeconomic threat. India’s Economic Affairs Secretary Ajay Seth stated that the country is reassessing its position on cryptocurrencies in line with global trends, noting that India leads in global cryptocurrency adoption.
The situation with Bybit demonstrates increasing regulatory scrutiny of the cryptocurrency industry in India. Despite challenging conditions, the nation remains a significant player in the global crypto market.
