- Bybit will suspend crypto trading in India starting Jan. 12, citing regulatory developments.
- Indian users can manage existing positions in Close-Only mode, but new trades and accounts are restricted.
- Bybit expects to secure its Indian license “in the coming weeks” while maintaining fund withdrawal services.
Bybit, a major player in the global crypto exchange market, has announced a temporary halt to its trading services in India due to evolving regulatory conditions. Starting Jan. 12 at 8:00 am UTC, the exchange will restrict a range of activities, including cryptocurrency trading, account creation, and placing orders through its other exchange products.
Compliance Over Continuity
The decision aligns with Bybit’s aim to adhere to “full compliance with all applicable rules and regulations,” as stated in its Jan. 10 announcement. The exchange elaborated:
“Due to recent developments from Indian regulators and in continuation of previously implemented restrictions […] Indian users will temporarily be unable to open new trades or access any products on the Bybit platform.”
However, the exchange clarified that while trading services are paused, fund withdrawals remain unaffected, ensuring users retain access to their assets during this suspension.
Bybit’s Global Challenges
Bybit’s regulatory hurdles aren’t confined to India. In August 2024, the platform halted operations in France, citing pressure from local authorities. The company stated its intention to secure a license in France, which would allow it to resume operations once regulatory requirements are met.
Similarly, in December 2024, Malaysia’s Securities Commission ordered Bybit to cease operations, accusing it of operating an unregistered crypto exchange. The regulator directly addressed CEO Ben Zhou, mandating compliance. By Dec. 27, Bybit confirmed it had followed the directives.
Indian License on the Horizon?
Despite these setbacks, Bybit remains optimistic about its future in India. While users won’t be able to place new orders, the exchange noted that existing positions could still be managed under a Close-Only mode:
“This means you will not be able to add to or modify these positions, but you can still manage closing positions.”
Bybit stated that it is actively working with regulators to finalize its registration as a virtual digital asset service provider in India, expecting approval in the “coming weeks.”
Final Thoughts
Bybit’s suspension of services in India reflects the broader regulatory challenges facing crypto exchanges globally. While it continues to navigate compliance issues in multiple regions, its commitment to securing licenses and maintaining user trust underscores its efforts to remain a significant player in the evolving crypto landscape.
