India Fines Crypto Exchange Bybit

The Indian Ministry of Finance recently announced that Bybit Fintech Ltd. (Bybit), a virtual digital asset service provider (VDA SP), has been penalized with a fine of ₹9.27 crore (about $1.06 million USD) by the Financial Intelligence Unit-India (FIU-IND) for breaching its obligations under the Prevention of Money Laundering Act, 2002 (PMLA).

The order, issued by FIU-IND Director Vivek Aggarwal on January 31, 2025, was a result of an investigation that found Bybit guilty of multiple violations.

According to the Ministry of Finance, Bybit had been expanding its services in the Indian market without obtaining the necessary registration with the FIU-IND.

This persistent non-compliance eventually led to the blocking of Bybit’s websites by the Ministry of Electronics and Communication Technology (MEITY) under the Information Technology Act, 2000.

Bybit, which falls under the category of a “reporting entity” as per Section 2(1)(wa) of the PMLA, was obligated to adhere to strict regulatory measures. However, the company continued to operate in India without authorization, resulting in the action taken by the FIU-IND.