Bybit Ban in India? Bybit Exchange has temporarily suspended crypto trading and account services in India due to regulatory changes, but user withdrawals remain unaffected as the exchange works to secure a local license.
Bybit, the world’s second-largest cryptocurrency exchange, has temporarily stopped its services in India because of new rules. This means no crypto trading, new account sign-ups, or order placements. The suspension started on January 12, 2025, at 8:00 am UTC (1:30 pm IST). Users can still withdraw their funds. The company is working on getting a local license to restart services.
Why Did Bybit Exchange Halt Services in India?
Bybit explained that it paused its services to follow the rules and regulations. The exchange said,
We made this decision while we continue to work with the government to complete our registration as a Virtual Digital Asset Service Provider in India. We hope to have this done in the next few weeks.
India’s increasingly stringent regulatory environment for cryptocurrencies has put many exchanges under pressure to align with local laws. Bybit Exchange decision shows that it wants to follow the rules and get the proper license to work legally in India.
Bybit Ban in India? Impact on Indian Users
Although some services are paused, Bybit Exchange has made sure that users can still access and withdraw their funds without any problems. Here’s what the suspension means for users:
What’s Affected:
Cryptocurrency Trading: Users can’t open new trades on the platform.
New Account Registrations: No new accounts can be created during this time.
Order Placements: Users won’t be able to place orders for different exchange products.
What’s Not Affected:
Fund Withdrawals: Users can withdraw their funds at any time, keeping their assets accessible.
Existing Derivatives Positions: These will be in Close-Only mode, so users can manage and close their current positions but can’t add or change them.
Bybit’s Commitment to Regulatory Compliance
Bybit’s quick actions and public messages show that it is serious about following the rules. The company reassured users that the suspension is only temporary and part of a bigger effort to follow Indian regulations.
“Bybit is working closely with Indian officials to make sure we meet all the rules and finish getting the license to be a Virtual Digital Asset Service Provider,” the exchange said. This shows that Bybit wants to serve Indian users in the future while following local laws.
A History of Regulatory Challenges
This isn’t the first time Bybit has faced problems with regulations. In August 2024, Bybit stopped its services in France because of similar issues, saying it was working to get the right license to start again. Also, Japan’s Financial Services Agency recently warned Bybit Exchange and four other exchanges for operating without the proper registration.
Bybit’s struggles are part of a bigger trend where governments around the world are paying more attention to the cryptocurrency industry and creating clearer rules.
The Bigger Picture: India’s Crypto Crackdown
India’s rules for cryptocurrencies have become stricter in recent years. The government is making sure taxes are paid and taking action against unregistered exchanges.
Unpaid Taxes: In 2024, authorities found $97 million in unpaid taxes from big exchanges like Binance and WazirX. Binance owes $85 million, while other exchanges have paid some of their taxes.
Central Bank Digital Currencies (CBDCs): The Indian government is encouraging the use of CBDCs. These are safer and work better than private cryptocurrencies like Bitcoin and Ethereum. Officials believe the risks of private digital currencies are bigger than the benefits.
Global Crypto Adoption: Despite the rules India was in the top 10 of the Global Crypto Adoption Index in 2024. This shows that more people in India are getting interested in digital assets.
What’s Next for Bybit Exchange in India?
Bybit’s suspension of services is only temporary, and the exchange is hopeful that the regulatory issues will be solved soon. We expect to complete our registration in the next few weeks, Bybit said. This shows that the company plans to return to the Indian market with all the necessary rules in place.
In the meantime, The company is likely to engage with regulators to address any outstanding concerns and expedite the licensing process. The exchange’s ability to adapt to India’s regulatory landscape will determine its future in the country.
The company’s decision to suspend its services in India underscores the growing influence of regulatory frameworks on the cryptocurrency industry. Although the suspension may cause some problems for users in the short term, Bybit’s effort to follow the rules shows its commitment to staying in the Indian market for the long run.
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This situation highlights why it’s important for users to stay updated on rule changes and choose platforms that follow the rules and are transparent. As Bybit Exchange works to fix these issues, the crypto community will be watching closely to see what happens next.
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