Key Takeaways
- Bybit assured users that their ability to withdraw funds remains unaffected.
- Users with existing trading positions will retain control over closing them but cannot make new modifications.
Leading crypto exchange Bybit has announced a temporary suspension of its trading services in India, citing evolving regulatory requirements.As per the official announcement, from January 12 at 8:00 am UTC, Bybit will halt key services, including cryptocurrency trading, account registrations, and order placements on its platform.
Reasoning its decision, Bybit stated that the move aligns with its commitment to operate within the framework of applicable regulations. The company stated, โDue 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.โ
While trading services are paused, the exchange assured users that their ability to withdraw funds remains unaffected. Further, users with existing trading positions will retain control over closing them but cannot make new modifications.
According to the announcement, โAny existing derivatives position will be placed in Close-Only mode, meaning no new additions or changes will be allowed, but users can still manage closing positions.โ
Bybit also stated it is actively working with Indian regulators to complete its registration as a virtual digital asset service provider. The company anticipates resolving the matter and resuming operations in the coming weeks.
The suspension in India is the latest in a series of regulatory challenges for Bybit across multiple jurisdictions. In August 2024, the exchange ceased operations in France following regulatory pressures. Bybit has since indicated its intention to secure licensing in France to resume activities.
In December 2024, Malaysiaโs Securities Commission directed Bybit to shut down operations after the regulator noted that Bybit offered services in the country without any registration. The exchange confirmed it had adhered to the directive as of December 27.
In November 2024, the Cyprus Securities and Exchange Commission (CySEC) informed investors that websites including Bybit were not linked to any official entity authorized to offer investment services
