The cryptocurrency exchange Bybit has declared that, in compliance with the tax structure of India, Virtual Digital Asset Service Providers would have to impose an 18% Goods and Services Tax (GST) on trading and service fees paid to Indian citizens.
The new tax structure, which is set to be levied from July 7th, will include crypto trading and service fees, including futures, spot, and copy trading.
The move comes as India is all set to become one of the most heavily taxed nation for crypto.
Bybit’s New Tax Rule To Be Levied On All Crypto Service
Bybit’s new tax compliance will be levied on crypto trading and service fees, including futures, spot, and copy trading.
This is on top of the 30% tax on profits and 1% TDS per transaction. The move comes as a rather disheartening measure for many crypto traders in nation.
India, at present, has already seen a huge brain drain of measure crypto investors who have left the nation for better trading conditions.
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India Still Remains Vague About Crypto Regulations
India has long delayed the implementation of proper crypto rules and regulations that would better help govern the nation’s markets. However, the government has been taxing income from crypto for long enough to make many investors angry.
The move has not only left the community with a sour throat, but it has also affected the retail participation in the crypto market.
Apart from Bybit, other exchanges like CoinDCX have also implemented the rules to comply with the government.
Bybit’s New Taxation Comes After Previous Regulatory Hurdles
Bybit’s previous regulatory tussle with Indian government bodies had resulted in the crypto exchange suspending its services for a brief period of time. However, after complying with all said rules, the platform was able to resume its services in India.
Following Bybit’s efforts to address concerns over anti-money laundering (AML) practices, the approval was made public on February 5, 2025, guaranteeing complete compliance with the Prevention of Money Laundering Act (PMLA) and other relevant requirements.
With the VDASP license, Bybit is now able to provide its digital currencies services in India while making sure the exchange complies with Indian regulations.
The move demonstrates Bybit’s continued efforts to gain the confidence of Indian regulators and offer a legitimate, open platform for the nation’s cryptocurrency consumers.
Also Read: India’s Tax Authority Issues Notices To Crypto Traders On Unregistered Platforms