Bybit registers with India FIU to comply with regulatory standards
The exchange faced a fine of approximately $1.06 million
In a significant move toward reestablishing its operations in India, cryptocurrency exchange Bybit has successfully registered with India's Financial Intelligence Unit (FIU).
This development follows a temporary suspension of services in the country due to regulatory challenges.
Compliance and penalties
Bybit's registration with the FIU signifies its commitment to adhering to India's anti-money laundering regulations under the Prevention of Money Laundering Act (PMLA) of 2005.
The exchange faced a fine of approximately $1.06 million (9.27 crore rupees) imposed by the FIU for operating without the necessary license. This penalty was part of a broader enforcement action that included blocking Bybit's website under the Information Technology Act of 2000.
Path to full operations
With FIU registration now complete, Bybit is actively pursuing a Virtual Digital Asset Service Provider (VDASP) license to fully comply with Indian regulations. The exchange anticipates obtaining this license in the coming weeks, which would allow it to resume full services for Indian users.
Global regulatory challenges
Bybit's experience in India reflects broader regulatory hurdles it has faced in other jurisdictions. The exchange has previously suspended operations in countries such as the United Kingdom, Canada, France, and Malaysia due to compliance issues. These challenges underscore the increasing global scrutiny of cryptocurrency platforms and the necessity for adherence to local regulations.
Bybit's recent registration with India's FIU marks a pivotal step in its efforts to align with local regulatory frameworks and reestablish its presence in the Indian market.
As the exchange moves closer to securing a full operational license, its actions may set a precedent for other cryptocurrency platforms navigating complex regulatory landscapes worldwide.
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