Bybit has fully resumed operations in India after months of regulatory suspension, following its registration with the Financial Intelligence Unit and a $1 million penalty.
Key Takeaways
- Bybit is back in India with full mobile app access and a phased return of its website.
- The exchange paid a $1 million fine and registered with India’s Financial Intelligence Unit (FIU-IND) to comply with anti-money laundering laws.
- Bybit was among several offshore crypto platforms banned in January 2025 for operating without proper registration.
- India remains a major crypto market despite high taxes and uncertain regulations, ranking first globally in crypto adoption.
What Happened?
Bybit, one of the world’s largest cryptocurrency exchanges by trading volume, has fully restored its services in India. This follows a suspension earlier in 2025 due to non-compliance with Indian regulations. The exchange has now secured approval from the Financial Intelligence Unit-India (FIU-IND) and resumed mobile app access with its website coming back online in phases.
Bybit has resumed full access for users in India 🇮🇳.
— Bybit (@Bybit_Official) September 8, 2025
The app is now available on the App Store and Google Play, website access is being initiated in phases and expected to be completed this week.
This milestone reflects our registration with FIU-IND, compliance with PMLA, and… pic.twitter.com/WtVUm3C69u
Bybit’s Regulatory Comeback in India
The Dubai-based exchange had temporarily halted most services in India on January 12, 2025, after the government banned offshore crypto platforms lacking registration under anti-money laundering laws. Bybit continued allowing withdrawals but disabled features like deposits, trading, and access to bots or copy trading tools.
In a coordinated compliance effort, Bybit:
- Registered with FIU-IND as a reporting entity in early 2025
- Paid a $1 million penalty for past violations
- Reinstated services gradually, beginning in February with limited access
- Fully restored its mobile app access via the App Store and Google Play in September
- Is now phasing back full website functionality for Indian users
The exchange also implemented stricter Know Your Customer (KYC) and security protocols to align with Indian standards.
“Not a Comeback, a New Chapter”
Bybit’s leadership emphasized their long-term commitment to India’s market. Co-founder and CEO Ben Zhou said, “India is among the most promising digital asset markets globally. We are excited to resume regular business and reaffirm our devotion to delivering Indian users a secure, transparent, and world-class cryptocurrency experience. It’s not a comeback, it’s a new chapter for Bybit in India.”
Bybit’s re-entry reflects a broader regulatory shift, with Binance, KuCoin, and Coinbase also securing FIU-IND approval to legally operate in India. These moves underscore the country’s strategic importance for global crypto firms.
India’s Crypto Landscape: Challenges and Opportunities
Despite regulatory hurdles, India remains a high-potential market for digital assets. Key facts:
- India tops Chainalysis’s Global Crypto Adoption Index for three consecutive years
- 30% capital gains tax applies to all crypto earnings
- A comprehensive crypto framework is still pending, leaving uncertainty for platforms and users alike
Bybit’s return highlights the delicate balance India must strike between enforcing crypto compliance and encouraging innovation in its rapidly growing digital asset ecosystem.
CoinLaw’s Takeaway
In my experience covering crypto regulations across global markets, India’s handling of offshore exchanges has been one of the most assertive yet opportunistic. The fact that Bybit, Binance, and others were able to re-enter after proper registration shows the government isn’t trying to stifle crypto outright, but wants oversight. I found Bybit’s case especially interesting because it not only paid up and complied but framed its return as a fresh start, which speaks volumes about its long-term ambition here. For investors and users in India, this is a win. It means more options, more competition, and a clear sign that compliance is the new entry ticket to this fast-moving market.
