Global cryptocurrency exchange Bybit has announced a temporary suspension of its trading services in India, citing ongoing regulatory developments. The suspension, which takes effect on January 12 at 8:00 am UTC, will restrict several key services, including cryptocurrency trading, new account registrations, and order placements across other exchange products.
In a statement released on January 10, Bybit emphasized its commitment to operating in compliance with all applicable rules and regulations. The announcement noted:
“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.”
Despite the halt in trading services, the exchange clarified that user fund withdrawals will remain unaffected.
Bybit Facing Regulatory Challenges
This is not the first time Bybit has faced regulatory headwinds. In August 2024, the exchange ceased operations in France following increased scrutiny from local regulators. Bybit stated that it is actively working toward obtaining a license in the country, which would enable it to resume operations.
Similarly, in late December 2024, Malaysia’s Securities Commission ordered Bybit to shut down its operations in the country. The regulator accused the exchange of operating without proper registration and directed Bybit’s CEO, Ben Zhou, to ensure compliance. As of December 27, the commission confirmed that Bybit had adhered to the directives.
Impact on Indian Users
Bybit’s announcement detailed the immediate impact on its Indian user base. While users will not be able to open new trades or access products, the exchange stated that existing trading positions can still be managed. However, these positions will be placed in “Close-Only” mode, meaning users will only be able to close positions without adding or modifying them.
The exchange expressed its intention to work closely with Indian regulators to finalize its registration as a virtual digital asset service provider. Bybit anticipates that this process will be completed “in the coming weeks,” paving the way for potential resumption of services in the region.
