The Financial Intelligence Unit of India (Fiu-in) has reasons to believe that the bybit crypto exchanged was in violations of the prevention of money laundering act. In a fresh development, the fiu has levied a penalty of Rs. 9.27 Crore on bybit for Continuing to operate in India without Bringing Its Operations in Compliance with India's Legal Guidelines. The Indian government is trying to maintain a strict oversight over the country's crypto ecosystem. The aim is to curb the exploitation of virtual assets for illegal activities like money laundering and teror finance.
Headquartered in Dubai, bybit was founded in 2018 by Ben Zhou. The crypto company claims To Cater to over 40 million users globally.
The Fiu Had Been Examining Bybit's Operations in India for a while. In recent months, officials at the exchange was directed to submit written documentation as well as verbal explanations to the fiu, Detailing Its Operations in the Country.
After conducting a thorough examination of the submissions, FIU-Ind Director Vivek Aggarwal Found bybit Liable of the Charges for Various Violations. According to an official Press releaseThe Fiu Found the exchange had not obtained its mandatory approval to legalise the status of its business in India.
“The Persistent and Continuous Non-Compliance caused fiu-in Meity), “The release noted.
Last Year, The Exchange Had Integrated India's Erupee CBDC with Its Peer-TO-Peer (P2P) Transaction Service Having To Multiple Requests from Indian Merchants. As the Fiu's Probe Over Its Business in India Intensified, Bybit Announced Earlier in January that it was suspending its services in India.
On January 10, The exchange posted a statement That Said, “Due to Recent Developments from Indian Regulators and In Continuation of Previous implemented restrictions, we regret to inform you that, Effective January 12, 2025, Indian Usors Villi TEMPORILELE Pen new trades or access any products on the bybit platform . The only exception will be withdrawals, which will remain available for your convenience. “
In addition to its Troubles in India, The Exchange has found its itself Facing Legal Action in Malaysia, as well. In December Last Year, The Securities Commission Malaysia (SC) Directed bybit to Halt Its Services for Not Being Compliant with Local Regulatory Requirements.
The founder of the exchange, zhou, have not yet commented on eater of the developments. Bybit is also what to share any details of steps taken at the firm to align its operations with the rules of different countries it operates in.