Bybit has resumed full access to its trading app for users in India, with website access expected to be fully restored in the coming days.
The move follows the company’s registration with the Financial Intelligence Unit-India (FIU-IND) and its compliance with India’s anti-money laundering regulations.
Bybit Reopens App in India After $1M Fine; Full Website Access to Follow
Bybit, the world’s second-largest cryptocurrency exchange by trading volume, announced today, September 8, that its app is once again available on both the App Store and Google Play in India. Meanwhile, website access is being reintroduced gradually and is expected to return completely within three to four days.
Bybit’s services were suspended after the Indian government fined the exchange 9.27 crore rupees ($1.06 million) on Jan. 31 for violating the Prevention of Money Laundering Act (PMLA). The regulator cited unregistered operations that triggered regulatory penalties and a website block under the Information Technology Act.
With crypto services now restored, the exchange called this a major milestone in its long-term strategy for the Indian market. Bybit emphasized that the effort reflects its focus on trust, transparency, and security as it expands services for Indian users.
Notably, Bybit registered with FIU-IND as a reporting entity in January, ensuring its operations comply with the Prevention of Money Laundering Act (PMLA). This was a key step in meeting India’s financial reporting and anti-money laundering requirements.
As a result, Bybit initially reactivated operations on Feb. 25, 2025, when authorized users regained access to trading features. However, complete functionality of apps and websites wasn’t completed. The complete restoration of services required ongoing engagement with regulators and was achieved only after several months of dialogue.
Bybit has now resumed offering a wide range of services to Indian customers. These include spot trading, derivatives, options, and copy trading. The company has also introduced stronger Know Your Customer (KYC) checks and enhanced security protocols to safeguard users.
Bybit’s return comes as global competitors eye India’s fast-growing market. Coinbase, which launched locally in April 2022, faced swift regulatory headwinds. Just days after its debut, the company suspended Unified Payments Interface (UPI) support under informal pressure from the Reserve Bank of India (RBI).
By June that year, Coinbase stopped new user sign-ups, and by September 2023, it officially restricted Indian accounts that failed to meet revised standards. Similarly, Coinbase is also eyeing a re-entry into the India market.
India’s regulators have kept a close watch on offshore exchanges. In late 2023, the FIU issued compliance notices to major platforms, including Binance, KuCoin, Huobi, Kraken, Gate.io, Bittrex, Bitstamp, MEXC Global, and Bitfinex.
Many faced URL blocks and app store removals until they paid fines and registered locally. Binance and KuCoin eventually resumed operations after meeting these conditions, but the environment remains tightly policed.
India Tops Global Crypto Adoption Index as Bybit Expands Visibility
It’s not surprising to see Bybit making efforts to restore operations in India. The 2025 Chainalysis Crypto Adoption Index ranks India first and the U.S. second, reflecting strong retail and institutional activity.
Beyond trading, Bybit has strengthened its visibility in India through sponsorships and events. The company became the title sponsor of the India Blockchain Tour 2025, which began in Hyderabad on June 28. The tour’s next stop is scheduled for September 27–28 in New Delhi under the Metamorphosis banner.
In a separate development, India plans to adopt the OECD’s Crypto-Asset Reporting Framework (CARF) by April 2027, enabling automatic global reporting of crypto transactions for greater compliance and transparency.
The country is expected to sign the Multilateral Competent Authority Agreement (MCAA) next year, extending existing financial data-sharing rules to digital assets, with legislative and system preparations already underway.
Despite this move, crypto regulations in India have been far from clear. The Supreme Court of India called for clear cryptocurrency regulations. The court noted that taxing Bitcoin profits at 30% implies legal recognition and emphasized that regulation, rather than a ban, is needed to monitor trade and prevent illicit activity.
Similarly, the Central Board of Direct Taxes (CBDT) earlier sought input from Indian crypto platforms on whether existing rules provide sufficient clarity for derivatives and cross-border transactions and whether the 1% tax-deducted-at-source (TDS) and 30% capital gains tax are excessive. The move signals a possible shift toward comprehensive digital asset regulation.
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