Bybit will restrict services in India from January 12, 2025, to comply with Indian VDA registration requirements.
Beginning on January 12, Bybit is going to temporarily restrict its services in India as it works toward finalizing its registration as a Virtual Digital Asset Service Provider.
his would enable Bybit to better serve its customers.Users from India will not be able to access additional products or open new trades on the platform; however, withdrawals will not be affected in any way.
Bybit, a cryptocurrency exchange, announced on Friday that it would be temporarily restricting its services to users in India. The restriction will commence at eight o’clock in the morning, UTC, on January 12th.
According to a statement released by Bybit, beginning on that date, Indian clients would be unable to access other goods on the platform, as well as launch new trades involving cryptocurrencies and fiat currencies, with the exception of withdrawals.
The current derivatives positions of users will be in “close-only” mode, meaning they can only be closed out. At the same time, the country will ban advertisements for peer-to-peer trading and limit transactions using Bybit Cards.
In addition, the exchange has announced that copy trading connections would be ended and trading bots will be terminated on January 13 before 5 a.m. UTC.
Bybit Responds to Indian Regulatory Developments
According to Bybit, the decision was made “in response to recent developments from Indian regulators and in continuation of restrictions that were successfully implemented in the past.”
While the company was continuing to work with India’s financial authority to conclude its registration as a Virtual Digital Asset Service Provider in the nation, the company stressed that it was taking the precaution.
Under the Prevention of Money Laundering Act, the Indian government has mandated that all VDA service providers operating in India, including offshore organizations serving Indian users, must register with the country’s Financial Intelligence Unit.
This regulation has been in effect since March 2023. A statement was made by the cryptocurrency exchange stating that it is committed to restarting services as soon as the registration process is finished, which it anticipates will be completed “in the coming weeks.”
Bybit has faced regulatory challenges in specific jurisdictions in the past. In May of 2023, it followed Binance’s lead and left the Canadian market. Subsequently, in September of that same year, it ceased operations in the United Kingdom.
It was in August of 2024 when the corporation decided to stop selling its products in France. The Malaysian Securities Commission announced in December of last year that it will be taking enforcement action against Bybit for running an exchange without the appropriate registration.
