Cryptocurrency exchange Bybit said it will temporarily suspend its services for its users in India in response to the country’s regulation.
The Dubai-based company intends to prevent its clients in India from opening new operations or accessing products on the platform starting Sunday. “The only exception will be withdrawals,” the company said in a blog post on Friday.
The shutdown may be short-lived. Bybit said it is working to finalize its registration as a Virtual Digital Asset Service Provider under Indian law, “which we hope to secure in the coming weeks.”
“We are committed to resuming full service as soon as we have completed our registration process with the FIU,” he added.
In March 2023, India mandated that cryptocurrency companies register with the Financial Intelligence Unit (FIU) that deals with anti-money laundering issues. Suppliers also had to comply with other processes under the Prevention of Money Laundering Act (PMLA), such as customer verification.
India’s Finance Ministry told CoinDesk last year that the rules applied to offshore exchanges and that appropriate action would be taken against offshore platforms that did not comply with them. CoinDesk reached out to Bybit for comment.
