Bybit has officially regained approval from India’s Financial Intelligence Unit (FIU), a significant step for the cryptocurrency exchange that had previously faced suspensions due to compliance issues. 

The approval, announced on February 5, 2025, follows Bybit’s efforts to address concerns related to anti-money laundering (AML) practices, ensuring full compliance with the Prevention of Money Laundering Act (PMLA) and other related regulations. 

The registration with FIU-IND marks a milestone in Bybit’s efforts to re-establish its operations in India, reinforcing its commitment to adhere to Indian legal frameworks and operate within the country’s financial guidelines.

Bybit Resolves Past Compliance Challenges and Seeks VDASP License

This approval comes after Bybit took decisive action to resolve the compliance challenges that led to its suspension in India.

In June 2024, the exchange submitted an application for a Virtual Digital Asset Service Provider (VDASP) license, signaling its intent to fully comply with India’s evolving cryptocurrency regulations. 

The VDASP license will allow Bybit to offer its cryptocurrency services in India, ensuring that the exchange operates in line with the nation’s regulatory standards. 

The move indicates Bybit’s ongoing efforts to build trust with Indian regulators and provide a legal, transparent platform for cryptocurrency users in the country.

Service Suspension and Resumption Plans

Bybit had previously suspended its services in India due to regulatory uncertainty, which was attributed to recent developments with Indian authorities. 

However, the registration with FIU-IND has paved the way for Bybit to resume its operations, with Vikas Gupta, Bybit’s country manager for India, revealing that the platform anticipates receiving its full operational license in the coming weeks. 

The news has been met with optimism from Indian users, who have been waiting for Bybit to re-enter the market. 

The resumption of services marks a critical moment for Bybit, as it prepares to reestablish its presence in one of the world’s largest and most dynamic cryptocurrency markets.

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A Path Forward for Bybit in the Indian Market

Bybit’s registration with India’s Financial Intelligence Unit is a crucial turning point in its operations within the country. 

The approval demonstrates the exchange’s commitment to regulatory compliance and transparency in the Indian market, setting a positive example for other cryptocurrency exchanges navigating India’s complex regulatory environment. 

As Bybit awaits the approval of its VDASP license, it is well-positioned to resume full operations and potentially capture a larger share of India’s growing crypto market. 

The ongoing regulatory developments, including India’s recent cryptocurrency tax policies, will continue to shape the future of exchanges operating within the country, making Bybit’s efforts an important case study for the industry.

Recent India Crypto News and Regulatory Landscape

In parallel with Bybit’s regulatory progress, India’s cryptocurrency landscape continues to evolve. 

The Indian government has announced that it will maintain a 30% tax on capital gains from virtual digital assets, a policy that has drawn mixed reactions from industry leaders. 

Despite requests for a more progressive tax structure, this 30% tax rate remains unchanged for the time being. 

Additionally, new rules introduced under Section 158B of the Income Tax Act will impose tax penalties of up to 70% on undeclared crypto gains. 

These developments underline the challenges and opportunities that crypto exchanges, like Bybit, face in complying with India’s dynamic regulatory framework, which continues to shape the future of the industry.

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