Global cryptocurrency exchange Bybit has announced a temporary suspension of its trading services in India, citing evolving regulatory conditions. The suspension, which begins on Jan. 12 at 8:00 am UTC, will affect cryptocurrency trading, new account openings, and the ability to place orders through various exchange products.
Regulatory Compliance Behind the Decision
In a statement released on Jan. 10, Bybit explained that the decision aligns with its commitment to adhere to “all applicable rules and regulations.” The company said:
“Due to recent developments from Indian regulators and in continuation of previously implemented restrictions […] Indian users will temporarily be unable to open new trades or access any products on the Bybit platform.”
While trading services are paused, withdrawals remain unaffected, ensuring that users can still access their funds.
Existing Positions in “Close-Only” Mode
Bybit clarified that users with open derivatives positions would still be able to manage their trades. However, they cannot modify or add to these positions. These trades will operate in a “Close-Only” mode, allowing users to manage and close their positions.
The exchange expressed optimism about finalizing its registration as a virtual digital asset service provider in India, stating that it expects to secure the necessary license “in the coming weeks.”
Bybit’s Global Regulatory Challenges
Bybit’s challenges in India follow similar regulatory issues in other jurisdictions:
- France: In August 2024, Bybit ceased operations in France due to regulatory pressure. The company has since stated its intention to obtain a license in the country to resume services.
- Malaysia: At the end of December 2024, Malaysia’s Securities Commission ordered Bybit to halt operations for running an unregistered crypto exchange. Bybit CEO Ben Zhou was instructed to comply with the regulator’s directives, which the company had fulfilled as of Dec. 27.
Bybit’s temporary suspension in India underscores the growing regulatory scrutiny faced by crypto exchanges globally. Despite these setbacks, the company remains committed to navigating legal challenges and resuming services where possible.
