In a significant move, Bybit, one of the leading global cryptocurrency exchanges, has announced a temporary suspension of its operations in India. This decision, effective from January 12, 2025, at 8:00 AM UTC, comes in the wake of regulatory developments in the country.
Why is Bybit Halting Services in India?
Bybit has consistently emphasized its commitment to adhering to all applicable rules and regulations. The latest announcement indicates that recent changes in India’s regulatory landscape have prompted the platform to take this step. In its official statement, Bybit said:
“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.”
This suspension extends to multiple services, including:
- Crypto and fiat trading: Indian users will no longer be able to open new trades or access existing trading products.
- Copy trading and trading bots: These services will be terminated by January 13, 2025, at 5:00 AM UTC.
- INR Peer-to-Peer (P2P) ads: All P2P ads will be removed starting January 12, 2025, at 8:00 AM UTC.
- Bybit Card transactions: All card transactions will be restricted.
However, withdrawals remain unaffected, ensuring users can access their funds during this period.
Impact on Indian Users
The suspension of services impacts various aspects of Bybit’s operations in India:
- Existing Derivatives Positions: Current positions will be placed in “Close-Only” mode. This means users can manage the closure of their positions but cannot add to or modify them.
- Deposits and New Trades: Both crypto and fiat deposits will be restricted, and users will not be able to open new trades.
- Campaigns and Tasks: Indian users will be excluded from participating in new or ongoing campaigns on the platform.
Despite these restrictions, Bybit has reassured its users that it is actively working with Indian regulators to complete its registration as a Virtual Digital Asset Service Provider. Once the registration process is finalized, Bybit aims to resume full operations in India.
Bybit’s Global Regulatory Challenges
This is not the first instance where Bybit has faced regulatory hurdles. In August 2024, the exchange ceased its operations in France due to similar pressures. Bybit has also encountered challenges in Malaysia, where the Securities Commission directed the platform to halt services. Bybit’s compliance efforts in Malaysia highlight its broader strategy to align with regulatory frameworks worldwide.
For more insights on cryptocurrency regulations and their impact, visit Research and Investment.
Looking Ahead
While the temporary suspension is a setback for Bybit’s Indian users, the exchange’s proactive approach to regulatory compliance signals its intent to establish a strong and lawful presence in the country. As Bybit continues its discussions with regulators, the crypto community in India remains hopeful for the platform’s return.
For a comprehensive understanding of the global regulatory landscape and its influence on cryptocurrency exchanges, refer to trusted sources like Cointelegraph and Investopedia.
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