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India’s Financial Intelligence Unit (FIU-IND) has imposed a ₹9.27 crore ($1.06 million) fine on Bybit Fintech Ltd. for failing to comply with the Prevention of Money Laundering Act (PMLA), 2002. The penalty follows an investigation revealing multiple regulatory violations. FIU-IND Director Vivek Aggarwal issued the order on January 31, 2025, after Bybit continued operating in India without mandatory registration.
Bybit’s Website Blocked Amid Continued Violations
Despite clear guidelines, Bybit expanded its services in India without FIU-IND approval. In response, authorities blocked Bybit’s website under the Information Technology Act, 2000, effectively halting its operations. The Ministry of Finance stated that FIU-IND had repeatedly warned virtual asset service providers about compliance requirements, including the Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) guidelines issued in 2023.
Government’s Crackdown on Crypto Non-Compliance
Bybit was found guilty of violating Section 12(1) of the PMLA and the Prevention of Money Laundering (Maintenance of Records) Rules, 2005. The ₹9.27 crore fine underscores the government’s strict stance on financial regulations in the digital asset sector. The Ministry of Finance reaffirmed its commitment to enforcing AML laws, warning all virtual digital asset (VDA) providers to comply with Indian financial regulations or face similar actions. Disclaimer: The views and opinions expressed in this article are for informational purposes only and do not constitute financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.