Bybit to temporarily suspend services in India 

Bybit will temporarily restrict its services to Indian users starting January 12.

According to the announcement made by the company, this pause occurred as the platform completed its registration with the Financial Intelligence Unit of India as a Virtual Digital Asset Service Provider.

During this period, Indian users will not be able to open new crypto or fiat transactions, access trading products or participate in campaigns. Existing derivative positions will be set to “close only” mode and users will be allowed to close their positions but will be prevented from making changes or additions.

Additionally, peer-to-peer trading ads on INR will be removed, copy trading relationships will be canceled, and trading bots will be disabled until January 13. However, withdrawals will not be affected.

Bybit stated that this move was a response to “recent developments from Indian regulators” and follows previous restrictions. Since March 2023, the Indian government has made it mandatory for all VASP operators, including offshore exchanges, to register under the Prevention of Money Laundering Act.

Bybit’s regulatory issues

This isn’t the first legal hurdle Bybit has faced. The exchange exited Canada in May 2023, suspended services in the United Kingdom until September 2023, and ceased operations in France in August 2024 due to licensing difficulties.

In December 2024, Malaysia’s securities regulator filed enforcement proceedings against the exchange operating without proper registration.

Bybit has expressed its commitment to continue full services in India once the registration process is completed. The company expects this to happen in the coming weeks and says it aims to align its operations with evolving regulatory frameworks.

“We are committed to resuming full service as soon as we complete our registration process with FIU,” the announcement said.