February 10, 2025
By Anjali Kochhar
Indian authorities have taken strict action against cryptocurrency exchange Bybit, imposing a ₹9.27 crore ($1.06 million USD) fine and blocking its website for violating anti-money laundering (AML) regulations. The move is part of India’s broader crackdown on unregistered crypto operations.
The Financial Intelligence Unit-India (FIU-IND), under the Ministry of Finance, announced the penalty on January 31, 2025, after an investigation found Bybit guilty of multiple violations of the Prevention of Money Laundering Act, 2002 (PMLA). FIU-IND Director Vivek Aggarwal issued the order, stating that Bybit had been operating in India without securing mandatory registration and had failed to comply with essential financial regulations.
According to the Ministry of Finance, Bybit continued expanding its services in India without obtaining approval from FIU-IND, despite being classified as a “reporting entity” under Section 2(1)(wa) of the PMLA. The company’s persistent non-compliance led FIU-IND to coordinate with the Ministry of Electronics and Information Technology (MEITY) to block Bybit’s website under the Information Technology Act, 2000, effectively shutting down its operations in India.
The Indian government has been tightening regulations on virtual digital asset service providers (VDA SPs) to prevent illicit financial activities. On March 10, 2023, FIU-IND issued AML and Combating the Financing of Terrorism (CFT) guidelines for VDA providers. Additionally, an October 17, 2023, circular mandated all crypto exchanges to register as reporting entities to ensure compliance with financial regulations. Bybit failed to adhere to these directives, prompting the enforcement action.
After reviewing Bybit’s written and oral submissions, FIU-IND concluded that the company violated multiple provisions of the Prevention of Money Laundering (Maintenance of Records) Rules, 2005 (PML Rules). The final order confirmed that Bybit had breached Section 12(1) of the PMLA, leading to the ₹9.27 crore fine.
The Ministry of Finance reaffirmed its commitment to enforcing strict anti-money laundering measures in the virtual asset sector. It warned that all digital asset service providers must comply with Indian financial laws or face similar consequences.
About the author
Anjali Kochhar covers cryptocurrency and blockchain stories in India as well as globally. Having been in the field of media and journalism for over three years now, she has developed a sharp news sense and works hard to present information that goes beyond the obvious. She is an avid reader and loves writing on a wide range of subjects.
