Cryptocurrency exchange Bybit has announced the introduction of an 18% GST for Indian users effective July 7, 2025, as part of complying with local tax regulations.
New Tax Rules for Users
The new GST rules will apply to all asset transfers between users and merchants on the trading platform. This means users will receive slightly less cryptocurrency after each transaction, as the GST will be automatically deducted. The GST will be calculated based on the price difference, also known as the spread, and will be visible in each user’s transaction history along with the trading fees.
Bybit confirmed that over 310,000 active Indian users will be affected by this update. The new policy will apply to a wide range of trading activities, including spot and margin trading, derivatives, fiat purchases using bank cards, and even staking.
Removal of Key Features for Indian Users
Bybit is also making significant changes to its services. Starting July 9, the exchange will remove several popular features for users in India, including crypto loans, the Bybit fiat card, and trading bots. This update is part of a broader enhancement to the platform that will affect how users trade and utilize crypto on Bybit. The exchange emphasized that existing crypto loans must be paid back by July 17, and any unpaid balances will be settled automatically.
Ongoing Challenges for Indian Investors
Since 2022, India has introduced strict tax rules on cryptocurrency, including a 30% tax on profits and a 1% TDS on every transaction. These earlier rules have already led to a decline in trading activity. Now, Bybit’s upcoming 18% GST is set to add more pressure. While the impact of these changes on crypto use in India is unclear, many traders are likely to feel its effects.
The changes being implemented by Bybit highlight the challenging tax landscape for crypto investors in India, which continues to evolve under strict regulation.
