Bybit resumes operations in India

Cryptocurrency exchange Bybit has restored services in the country, according to a February 25 announcement.

The company in a statement said:

As of Feb 25, all Bybit services, including the ability to open new trades and access all products, have been fully restored for existing users. Onboarding of new users will also gradually commence today.”

This follows a ₹9.27 crore ($1.06 million) fine imposed by India’s Financial Intelligence Unit (FIU-IND) for violating the Prevention of Money Laundering Act (PMLA).

Bybit had suspended services in India weeks before the penalty, citing compliance concerns.

The FIU-IND report stated that the exchange expanded its operations without mandatory registration, leading authorities to block its website under the Information Technology Act.

Earlier in the month, the exchange officially registered with India’s Financial Intelligence Unit as a reporting entity.

Bybit’s return comes at a critical time, as major exchanges like Binance have resumed services in the growing market in recent times.

India remains a key market for crypto firms, driven by increasing adoption and rising trading volumes.

Bybit is currently active in 1,174 markets with over 60 million users worldwide, according to CoinMarketCap.

Bybit Hack: $1.4B stolen

The development comes just days after Bybit suffered a massive security breach on February 21, with the North Korean Lazarus Group stealing over $1.4 billion in Ether-related tokens—the largest crypto theft in history.

The attack highlights security vulnerabilities in centralized exchanges, with experts pointing to the increasingly sophisticated exploits used by cybercriminals.

Park Jin Hyok, a suspected Lazarus Group operative previously linked to the 2014 Sony hack and 2017 WannaCry ransomware, is believed to have led the group’s pivot to crypto crimes.

Lazarus embedded operatives in crypto firms, leveraging phishing and insider intelligence to bypass security.

Stolen funds were laundered through decentralized protocols, a pattern seen in previous North Korean cyber heists.

In 2024, North Korean hackers stole $1.34 billion in crypto. Just two months into 2025, they have already surpassed that figure.

India’s crypto regulations

Prior to Bybit, Binance and KuCoin were two major exchanges that had registered with the Financial Intelligence Unit (FIU) after a ban on nine foreign exchanges in December 2023.

The FIU cited violations of anti-money laundering policies as the reason for the crackdown.

Since March 2023, India has required all crypto exchanges, including offshore platforms, to register under the Prevention of Money Laundering Act (PMLA).

• Binance paid a $2.25 million fine before resuming services in August 2024.
• KuCoin paid a $40,000 penalty for past non-compliance.

The FIU has also been investigating foreign exchanges to recover unpaid taxes.

Reports indicate that seven offshore exchanges—Bitfinex, MEXC Global, Kraken, Huobi, Gate.io, Bittrex, and Bitstamp—owed the Indian government ₹2,900 crore (approximately $331.85 million) in goods and services tax (GST).

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