Bybit has been penalized by 9.27 crore rupees (approximately $1.06 million) by the Financial Intelligence Unit (FIU) of India. This fine was imposed due to violations of the Prevention of Money Laundering Act (PMLA) as detailed in official documents released on January 31, 2023.
The exchange, which ranks second in the world by trading volume, was classified as a ‘reporting entity’ under the PMLA by the Indian Ministry of Finance. The FIU took action after Bybit expanded its operations in India without registering with the FIU-IND, which is required by law.
This resulted in the FIU-IND blocking Bybit’s website through the Ministry of Electronics and Communication Technology (MEITY) under the Information Technology Act, 2000.
The decision to impose the fine came after Bybit announced the suspension of its services in India, citing “recent developments with Indian regulators” and concerns about compliance.
