Bybit restores app access in India amid evolving regulatory stance
Cryptocurrency exchange Bybit has reinstated access to its mobile app for users in India via Apple’s App Store and Google Play, saying website access has been restored following regulatory steps taken earlier this year. The company said it registered with the Financial Intelligence Unit–India (FIU-IND) in January 2025 and re-enabled trading functions for eligible users on Feb. 25, with full app access announced on Sept. 8.
Penalty and registration paved way for Bybit’s comeback
The return follows an enforcement action at the start of the year. On Jan. 31, FIU-IND imposed a penalty of 92.7 million Indian rupees (approximately $1.05 million) on Bybit for violations under India’s anti-money laundering law and said its website had been blocked under the Information Technology Act until compliance was achieved. The following month Bybit announced it had paid the penalty and completed its FIU registration.
Bybit’s latest announcement comes against the backdrop of India’s cautious approach to sector-wide rules. A government document reviewed by Reuters indicates New Delhi is distancing itself from a comprehensive cryptocurrency law, citing the Reserve Bank of India’s view that regulation could confer “legitimacy” and elevate systemic risks, while an outright ban would not stop peer-to-peer or decentralized exchange activity.
India does not have a comprehensive crypto law but applies a flat 30% tax on income from transfers of virtual digital assets (VDAs) and a 1% tax deducted at source (TDS) on consideration paid for VDA transfers under section 194S of the Income-tax Act.
Platforms bet on India despite tighter oversight
It's worth noting that authorities had moved to bring offshore platforms within local oversight. FIU-IND issued show-cause notices to nine foreign exchanges (Bitfinex, Bittrex, Binance, Bitstamp, Gate.io, Huobi, Kraken, KuCoin and MEXC Global) in December 2023 and sought to block access to non-compliant services. App store removals of several offshore exchange apps occurred in January 2024 following the notices.
Binance later registered with FIU-IND as a reporting entity after paying a fine of 188.2 million Indian rupees (about $2.14 million) for earlier violations, imposed in June 2024. KuCoin also registered, with a smaller penalty of $41,000. In March 2025, Coinbase joined the list by gaining clearance from the Indian financial regulator, announcing plans to launch offerings for retail customers in the country later this year, with other products to follow. Their rush to establish a foothold makes sense, as India topped the Chainalysis Global Crypto Adoption Index, underscoring the country’s widespread embrace of digital assets.
Bybit’s re-entry follows a major security incident unrelated to India’s rules. In February, the exchange reported a theft of roughly $1.5 billion in Ethereum (ETH), which the U.S. Federal Bureau of Investigation later attributed to North Korean actors known as “TraderTraitor.” Shortly after the incident, Bybit CEO Ben Zhou said the exchange had replenished the gap in the ETH reserves.
