Cryptocurrency Exchange India’s banking authority fined Bybit $1 million for not adhering to anti-money laundering legislation. The Financial Intelligence Unit (FIU) imposed the penalty after discovering that Bybit continued to operate without obtaining the necessary registration as a Virtual Digital Asset Service Provider (VDA SP).
According to the FIU, Bybit developed its services in India without obtaining the required registration, which violated the Prevention of Money Laundering Act (PMLA). Due to this noncompliance, officials blocked Bybit’s website under the Information Technology Act, effectively putting the company’s operations in the country on hold.
The enforcement action is part of India’s broader crackdown on cryptocurrency platforms that fail to meet regulatory standards. The government has increased supervision of the digital asset sector to ensure that all market players follow anti-money laundering and financial security regulations.
Bybit recently ceased operations in India, citing continuing conversations with regulators. The exchange has since applied for a Virtual Digital Asset Service Provider (VDASP) license in the aim of continuing operations in accordance with Indian regulations. However, its current regulatory situation is questionable.
