Service interruption announced by Bybit in India
Bybit Imposes Temporary Restrictions on Indian Users
Cryptocurrency exchange Bybit has announced temporary restrictions for Indian users, effective from January 12, 2025. The decision is aimed at ensuring full compliance with all applicable rules and regulations in India.
The restrictions do not affect any existing positions or products previously accessed by Indian users on the platform. However, Indian users will be unable to open new positions, trade cryptocurrency, or access any of the products offered by Bybit.
The temporary restrictions are not related to any regulatory issues in India but rather to recent developments with Indian regulators. Bybit plans to register as a virtual asset service provider (VASP) in India to continue operating within the legal framework set by Indian authorities.
India's regulatory environment around crypto is tightening. Effective from July 7, 2025, there is an 18% Goods and Services Tax (GST) on crypto service fees, and existing taxes such as a 30% tax on crypto gains plus cess and tax deductions at source (TDS). These regulations aim to bring crypto trading under stricter oversight, ensure consumer protection, tax compliance, and anti-money laundering standards.
While India is still evaluating a balanced approach to cryptocurrency, the current regulatory stance prompts platforms like Bybit to ensure full compliance through registration as a VASP before resuming unrestricted services to Indian users. This registration will help Bybit legally operate under Indian law, complying with all new taxation and service regulations.
Bybit has faced regulatory issues in other countries, such as the Securities Commission of Malaysia, which accused Bybit of operating without a license and ordered it to cease operations by December 25, 2024. However, the restrictions imposed on Indian users by Bybit are not permanent and are intended to be lifted once registration as a VASP in India is completed.
Bybit representatives emphasized their plans to complete registration as a VASP in India, which will allow them to legally operate under Indian law and continue offering services to Indian users within the legal framework set by Indian regulators. The company has not indicated any plans to leave the Indian market permanently.
[1] India's Crypto Taxation and Regulatory Landscape
[2] Bybit to Register as a Virtual Asset Service Provider in India
[3] India Imposes 18% GST on Crypto Service Fees
[4] India's Crypto Regulatory Stance Prompts Bybit to Register as a VASP
- In light of the stricter regulations and taxes imposed on cryptocurrency trading in India, such as the 18% Goods and Services Tax (GST) on crypto service fees, Bybit plans to register as a virtual asset service provider (VASP) in the country to operate within the legal framework set by Indian authorities.
- As part of its efforts to ensure full compliance with all applicable rules and regulations in India, Bybit has imposed temporary restrictions on Indian users, preventing them from opening new positions, trading cryptocurrency, or accessing any of the products offered by the platform, until registration as a VASP is completed, which will allow the company to legally operate under Indian law and continue offering services to the Indian market.
