Services provided by Bybit temporarily ceased in India.
In a recent announcement, cryptocurrency exchange Bybit has imposed temporary restrictions on its services for Indian users. The restrictions, which took effect on January 12, prevent Indian users from opening new accounts, trading cryptocurrency, and accessing any other products on the platform. However, these restrictions do not affect existing positions or accounts for Indian users.
The move by Bybit is in response to India's strict and expanding cryptocurrency tax and regulatory measures, which were introduced in 2025. One of the key changes is the imposition of an 18% Goods and Services Tax (GST) on all crypto-related transactions for Indian users, including spot and margin trading, derivatives, fiat transactions, withdrawals, and staking. This GST adds a significant cost layer on platform usage.
In addition to enforcing GST, Bybit has also discontinued some legacy products and services such as crypto loans, fiat cards, and trading bots as part of its compliance adjustments with Indian rules.
India's regulatory crackdown on cryptocurrencies includes government efforts to formalize crypto tax and compliance frameworks, including a 30% flat income tax and 1% TDS on crypto gains. Indian tax authorities are also expanding enforcement to offshore exchanges serving Indian residents via the OIDAR framework, which brings foreign digital service providers under GST obligations.
There is increased scrutiny and a push for alignment with global regulatory standards through agencies like SEBI, RBI, and the Financial Stability Board review scheduled for late 2025. Bybit's move represents an early formal compliance step amid India's evolving regulatory environment.
Bybit's decision to restrict Indian users is due to regulatory compliance, not a choice or preference. The exchange has not specified a date for when the restrictions will be lifted, but it has plans to complete registration as a virtual asset service provider in India.
It is worth noting that Bybit announced it would discontinue services in France in August, following tighter regulatory requirements in preparation for the MiCA framework. However, the restrictions for Indian users on Bybit are due to recent developments with Indian regulators and previously introduced restrictions.
Bybit representatives have emphasized that the restrictions for Indian users do not affect withdrawals. The exchange has not released any information regarding the specific regulations that led to these restrictions.
In summary, Bybit is temporarily restricting and restructuring its services for Indian users due to India's intensified crypto tax regime and compliance enforcement, including the new 18% GST and heightened regulatory scrutiny, which has made continued unrestricted service provision less viable without adjustments.
- The financial industry, including cryptocurrency exchanges like Bybit, is facing increased regulation and policy changes in the realm of politics and policy-and-legislation, especially in countries like India, where there's a push for formalizing crypto tax and compliance frameworks.
- The recent move by Bybit to impose temporary restrictions on its services for Indian users is a response to India's strict and expanding cryptocurrency regulations, which include an 18% Goods and Services Tax (GST) on all crypto-related transactions and a 30% flat income tax on crypto gains.
- As technology advances and fintech continues to evolve, traditional finance is increasingly being subjected to tighter regulations, as seen in the case of Bybit, which has discontinued some legacy products and services due to compliance adjustments with Indian rules, signifying a shift towards more regulated operations in the industry.
