Cryptocurrency exchange Bybit has taken a significant step toward formal operations in India by securing registration with the country’s Financial Intelligence Unit (FIU). The announcement, made on February 5, marks a pivotal development for the platform, positioning it as one of the leading global exchanges actively aligning with India’s evolving regulatory framework for digital assets.
As the second-largest crypto exchange by trading volume worldwide, Bybit’s FIU registration clears a major hurdle in its path to full market access. This milestone follows a period of regulatory scrutiny, during which the exchange was fined for non-compliance with anti-money laundering protocols. However, Bybit has since settled the penalty and reaffirmed its commitment to transparency and compliance under India’s Prevention of Money Laundering Act (PMLA).
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Strengthening Regulatory Compliance and AML Standards
Bybit emphasized its dedication to robust Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) frameworks. In a statement issued to Cryptotimes, the exchange noted:
“We recognize the importance of robust Anti-Money Laundering (“AML”) and Combating the Financing of Terrorism (“CFT”) measures and are dedicated to upholding the highest standards in these areas.”
This proactive stance underscores Bybit’s strategy of aligning with international financial regulations, especially in high-potential markets like India. The FIU registration is not just a formality—it's a critical requirement for any Virtual Digital Asset Service Provider (VDASP) operating in India. With this registration complete, Bybit moves closer to obtaining its full VDASP license.
The exchange initially submitted its VDASP application in June 2024. Although the approval process faced delays, company leadership remains confident. Vikas Gupta, Bybit’s Country Manager for India, expressed optimism about finalizing the full operational license within weeks.
Building Trust Through Industry Collaboration
Beyond compliance, Bybit is actively investing in community engagement and industry partnerships to strengthen its presence in India. The platform is currently a Silver Associate Member of the Bharat Web3 Association (BWA), a leading industry body advocating for responsible blockchain innovation in the country.
Through this collaboration, Bybit aims to support policy dialogue, promote Web3 adoption, and contribute to building a sustainable digital asset ecosystem. The partnership also enables the exchange to work closely with regulators, startups, and academic institutions to shape the future of decentralized technologies in India.
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Advancing Crypto Education Across Indian Universities
One of Bybit’s most impactful initiatives in India centers on education. Through its not-for-profit arm, the Blockchain for Good Alliance (BGA), the exchange has partnered with prominent university blockchain societies—including those at IIT Delhi and IIT Kharagpur.
These collaborations focus on demystifying blockchain technology and expanding access to crypto literacy among students and young professionals. Upcoming programs include:
- Hackathons focused on decentralized finance (DeFi) and real-world blockchain applications
- Workshops covering smart contracts, wallet security, and tokenomics
- Campus roadshows to introduce students to career opportunities in Web3
By empowering the next generation of developers and entrepreneurs, Bybit is laying the groundwork for long-term innovation in India’s digital economy.
Core Keywords and Market Positioning
The strategic moves by Bybit highlight several core keywords that reflect both user search intent and market trends:
- Bybit India
- FIU registration
- VDASP license
- crypto regulation India
- blockchain education India
- AML compliance crypto
- Web3 adoption
- IIT blockchain initiatives
These terms naturally emerge throughout Bybit’s engagement strategy—from regulatory updates to academic outreach—making them essential for SEO visibility and audience targeting.
Frequently Asked Questions
What does FIU registration mean for Bybit users in India?
FIU registration allows Bybit to legally operate as a crypto service provider in India. For users, this means enhanced security, regulatory oversight, and greater confidence in fund safety and transaction transparency.
Is Bybit fully legal in India now?
While Bybit has secured FIU registration—a mandatory requirement—it is still awaiting final approval of its VDASP license for full operational status. Until then, certain services may be limited or unavailable to Indian users.
How does Bybit ensure compliance with Indian laws?
Bybit complies with the Prevention of Money Laundering Act (PMLA) by implementing strict KYC (Know Your Customer) procedures, transaction monitoring systems, and regular reporting to the FIU. It also conducts internal audits and staff training on AML/CFT protocols.
What is the Blockchain for Good Alliance?
The Blockchain for Good Alliance (BGA) is Bybit’s philanthropic initiative aimed at promoting blockchain education, supporting open-source development, and funding social impact projects using decentralized technologies.
Are Indian users currently able to trade on Bybit?
Yes, many Indian users can access Bybit’s global platform. However, once full VDASP licensing is achieved, localized features such as INR deposits, customer support in regional languages, and tailored educational content are expected to roll out.
Will Bybit launch INR trading pairs?
While not yet confirmed, industry analysts expect that upon receiving full regulatory clearance, Bybit will introduce INR trading pairs to facilitate seamless onboarding for Indian investors.
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Looking Ahead: Full Market Integration
Bybit’s journey in India reflects a broader trend among major crypto platforms: moving from informal market presence to formal, regulated operations. As governments worldwide tighten oversight on digital assets, exchanges that prioritize compliance—like Bybit—are better positioned for sustainable growth.
With FIU registration secured, educational programs underway, and a VDASP license on the horizon, Bybit is building a comprehensive ecosystem tailored to Indian users. Whether through policy advocacy, academic partnerships, or user protection measures, the exchange is demonstrating a long-term commitment to responsible innovation.
As the Indian crypto market continues to mature—with an estimated 15 million retail investors and growing institutional interest—the role of compliant, education-driven platforms will only become more vital.
By aligning regulatory adherence with community empowerment, Bybit isn’t just entering the Indian market—it’s helping shape its future.