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Bybit suspends crypto trading in India amid regulatory pressures

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ISN Team
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bybit crypto halt in india

Regulatory concerns have prompted global crypto exchange Bybit to temporarily halt its services in India, effective Jan. 12 from 8 a.m. UTC.

The company announced that Indian users will be unable to open new trades or access certain products on its platform, though withdrawals remain unaffected. Existing derivatives positions will be put in close-only mode, meaning users can manage only the closing of trades.

Complying with Indian regulations

Bybit attributed the suspension to recent regulatory developments in India and said it aims to comply fully with all rules and regulations.

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The exchange is working with financial authorities to secure registration as a Virtual Digital Asset Service Provider, a process it expects to finalize in the coming weeks.

Under Indian law, crypto exchanges must register with the country’s Financial Intelligence Unit to operate in accordance with anti-money laundering regulations. This is not Bybit’s first encounter with regulatory hurdles.

Last year, it ceased operations in France following local pressure and put a stop to its services in Malaysia after a directive from the Securities Commission. 

The exchange also exited the Canadian market in May 2023 and suspended services in the United Kingdom later that year. Despite these challenges, Bybit maintains that it is focused on resuming full operations in India once it obtains the necessary license. The move underscores the tightening regulations across various global markets, as authorities closely monitor cryptocurrency activities to ensure compliance and protect investors.

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