Bybit Fined $1.06M for Non-Compliance
- India imposes hefty fine on Bybit for PMLA non-compliance.
- Bybit operations in India halted due to regulatory actions.
- Bybit seeks VDASP license to operate legally in India.
India’s financial watchdog has levied a fine of $1.06 million on Bybit, a major crypto exchange, for failing to comply with anti-money laundering regulations in the country. This development has raised questions about Bybit’s compliance status.
Reason Behind the Fine
Bybit faced issues as it operated without the required registration under the Prevention of Money Laundering Act (PMLA). The Financial Intelligence Unit (FIU) of India classified Bybit as a ‘reporting entity’ due to its digital asset services.
In response to non-compliance by crypto exchanges, the FIU took action against Bybit, leading to the suspension of its operations in India. Despite applying for a VDASP license, Bybit’s compliance status remains uncertain.
Bybit’s Efforts to Obtain a License
Bybit has actively pursued a VDASP license in India to resume operations legally. The application was submitted in June 2024, signaling Bybit’s commitment to meeting regulatory requirements in the country.
Vikas Gupta, Bybit’s country manager for India, remains optimistic about securing a full operations license soon. However, conflicting reports about registration and fine settlement have left stakeholders uncertain about Bybit’s compliance in India.
Regulatory Landscape in India
India’s strict approach towards financial entities, including crypto exchanges, highlights the importance of adhering to anti-money laundering laws. Other major exchanges like Binance and KuCoin have also faced regulatory actions for non-compliance with PMLA and financial regulations.
