Bybit Fined $1.06M, Website Blocked in India Over AML Violations

India’s Financial Intelligence Unit (FIU-IND) has imposed a ₹9.27 crore ($1.06 million) fine on Bybit Fintech Ltd. for failing to comply with the Prevention of Money Laundering Act (PMLA), 2002. The penalty follows an investigation revealing multiple regulatory violations. FIU-IND Director Vivek Aggarwal issued the order on January 31, 2025, after Bybit continued operating in India without mandatory registration.

Bybit’s Website Blocked Amid Continued Violations

Despite clear guidelines, Bybit expanded its services in India without FIU-IND approval. In response, authorities blocked Bybit’s website under the Information Technology Act, 2000, effectively halting its operations. The Ministry of Finance stated that FIU-IND had repeatedly warned virtual asset service providers about compliance requirements, including the Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) guidelines issued in 2023.

Government’s Crackdown on Crypto Non-Compliance

Bybit was found guilty of violating Section 12(1) of the PMLA and the Prevention of Money Laundering (Maintenance of Records) Rules, 2005. The ₹9.27 crore fine underscores the government’s strict stance on financial regulations in the digital asset sector. The Ministry of Finance reaffirmed its commitment to enforcing AML laws, warning all virtual digital asset (VDA) providers to comply with Indian financial regulations or face similar actions.

Disclaimer: The views and opinions expressed in this article are for informational purposes only and do not constitute financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

Bybit Fined $1.06M

Sujit Kumar

Sujit received his Bachelors in Science from the LNMU Darbhanga. He is currently working as a Content Strategist. He has more than three years of professional experience in information systems, security policies, technologies, and Cryptocurrency. He has published 6 books in the area of information security and assurance. He has published more than 50 research articles in leading journals Regarding the Latest and Breaking Crypto News and updates. His research interests include access control, computer forensics, Digital Marketing, Web development, business hacks, player experience, and virtual storytelling.