{"id":46709,"date":"2025-02-05T15:37:26","date_gmt":"2025-02-05T15:37:26","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/indias-financial-regulator-fines-bybit-1m-compliance-status-unclear\/"},"modified":"2025-02-05T15:37:26","modified_gmt":"2025-02-05T15:37:26","slug":"indias-financial-regulator-fines-bybit-1m-compliance-status-unclear","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/indias-financial-regulator-fines-bybit-1m-compliance-status-unclear\/","title":{"rendered":"India\u2019s financial regulator fines Bybit $1M, compliance status unclear"},"content":{"rendered":"<p><b>(Originally posted on : CoinJournal: Latest Crypto News, Altcoin News and Cryptocurrency Comparison )<\/b><br \/>\n<\/p>\n<div data-site=\"CoinJournal\">\n<div class=\"post-article-image  -mt-24  mb-8  lg:-mt-32  rounded  overflow-hidden\" data-site=\"CoinJournal\">\n<picture><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2024\/10\/bybit-smartcrop-750x375.webp\" type=\"image\/webp\" media=\"(min-width: 750px)\"\/><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2024\/10\/bybit-smartcrop-363x181.webp\" type=\"image\/webp\"\/><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2024\/10\/bybit-smartcrop-750x375.jpg\" type=\"image\/jpeg\" media=\"(min-width: 750px)\"\/><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2024\/10\/bybit-smartcrop-363x181.jpg\" type=\"image\/jpeg\"\/>\n<\/picture>                    <\/div>\n<ul>\n<li>Bybit has been fined $1.06 million for PMLA non-compliance<\/li>\n<li>India blocked Bybit sites pausing the exchange operations in the country<\/li>\n<li>Bybit is seeking a VDASP license amid compliance confusion<\/li>\n<\/ul>\n<p>India\u2019s financial watchdog has levied a hefty fine on Bybit, one of the world\u2019s largest crypto exchanges, for failing to adhere to the country\u2019s stringent anti-money laundering (AML) regulations.<\/p>\n<p>According to the country\u2019s Ministry of Finance, the <a href=\"https:\/\/pib.gov.in\/PressReleaseIframePage.aspx?PRID=2098153\" target=\"_blank\" rel=\"noopener\">fine amounted<\/a> to $1.06 million (9.27 crore rupees).<\/p>\n<p>While this move underscores India\u2019s commitment to regulating the burgeoning cryptocurrency market, it leaves Bybit\u2019s compliance status unclear.<\/p>\n<h2>Why such a hefty fine?<\/h2>\n<p>Bybit\u2019s troubles began when it was found operating without securing mandatory registration under the Prevention of Money Laundering Act (PMLA).<\/p>\n<p>According to the Financial Intelligence Unit (FIU) of India, Bybit is classified as a \u2018reporting entity\u2019 due to its services in the digital asset space.<\/p>\n<p>In December 2023, the <a href=\"https:\/\/coinjournal.net\/news\/india-issues-compliance-notices-to-nine-offshore-exchanges-including-binance\/\">FIU identified several crypto exchanges for non-compliance with local anti-money laundering laws<\/a>, but Bybit was not among the listed exchanges.<\/p>\n<p>However, the exchange continued to expand its operations in India without the required registration, prompting the FIU to take action.<\/p>\n<p>Indian authorities, through the Ministry of Electronics and Communication Technology (MEITY), blocked Bybit\u2019s websites under the Information Technology Act 2000, effectively halting Bybit\u2019s operations in India.<\/p>\n<p>However, the suspension came after Bybit had already announced a pause in its services due to \u201crecent developments with Indian regulators,\u201d hinting at prior knowledge of regulatory scrutiny.<\/p>\n<h2>Bybit has applied for a VDASP license in India<\/h2>\n<p>Amidst these challenges, Bybit has been actively working towards rectifying its status in India. The exchange has applied for a Virtual Digital Asset Service Provider (VDASP) license, aiming to legally operate within India\u2019s crypto market.<\/p>\n<p>This application was completed back on June 26, 2024, indicating a proactive approach to meet regulatory requirements.<\/p>\n<p>Vikas Gupta, Bybit\u2019s country manager for India, expressed optimism about obtaining a full operations license in the coming weeks, suggesting an expectation of smoother regulatory waters ahead.<\/p>\n<p>Initially, there were announcements from Bybit suggesting successful registration and fine settlement, but these were later retracted, leaving the public and stakeholders in limbo regarding the exact compliance status of Bybit in India.<\/p>\n<p>India\u2019s approach indicates a strong push towards ensuring that all financial entities, including those dealing in cryptocurrencies, adhere strictly to anti-money laundering and counter-terrorism financing norms.<\/p>\n<p>Other major exchanges like Binance, KuCoin, and OKX have also faced similar regulatory actions for non-compliance with PMLA and other financial laws.<\/p>\n<div class=\"post-meta\">\n<hr class=\"mb-6\"\/>\n<h6 class=\"text-3xl  mb-4  text-green-300\">Share this article<\/h6>\n<hr class=\"mb-6\"\/>\n<h6 class=\"text-3xl  mb-4  text-green-300\">Categories<\/h6>\n<hr class=\"mb-6\"\/>\n<h6 class=\"text-3xl  mb-4  text-green-300\">Tags<\/h6>\n<\/p><\/div>\n<\/p><\/div>\n<p><a href=\"https:\/\/coinjournal.net\/news\/indias-financial-regulator-fines-bybit-1m-compliance-status-unclear\/\">Source link <\/a><br \/>\n<br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Originally posted on : CoinJournal: Latest Crypto News, Altcoin News and Cryptocurrency Comparison ) Bybit has been fined $1.06 million for PMLA non-compliance India blocked Bybit sites pausing the exchange operations in the country Bybit is seeking a VDASP license amid compliance confusion India\u2019s financial watchdog has levied a hefty fine on Bybit, one of [&hellip;]<\/p>\n","protected":false},"author":7,"featured_media":46710,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[35],"tags":[],"_links":{"self":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/46709"}],"collection":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/comments?post=46709"}],"version-history":[{"count":0,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/46709\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media\/46710"}],"wp:attachment":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media?parent=46709"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/categories?post=46709"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/tags?post=46709"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}