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World cryptocurrency exchange Bybit has implemented a temporary suspension of its trading services in India, citing ongoing regulatory changes.
The halt will take effect on January 12 at 8:00 am UTC, impacting various services, including cryptocurrency trading, account openings, and order placements on its platform, as stated in a press release issued on Friday.
“Due to recent developments from Indian regulators and in continuation of previously imposed restrictions, we regret to inform you that, effective Jan 12, 2025, 8AM UTC, Indian users will temporarily be unable to open new trades or access any products on the Bybit platform,” the exchange announced.
Withdrawals Will Remain Unaffected
While trading activities are paused, Bybit assured users that fund withdrawals will remain unaffected.
Additionally, existing trading positions can still be managed under a “Close-Only” mode, allowing users to close positions but not modify or add to them.
ByBit says permanent farewell to India
pic.twitter.com/9sxyQMTvc0
— Kashif Raza (@simplykashif) January 10, 2025
It is noteworthy that Bybit introduced digital rupee payments back in July, integrating the Indian central bank digital currency (CBDC) into its platform.
This is not the first instance of Bybit encountering regulatory hurdles. In August 2024, the exchange halted operations in France due to regulatory pressures, with efforts currently underway to obtain a license that would permit it to resume activities in the country.
Bybit has also faced scrutiny in Malaysia. In late December 2024, Malaysia’s Securities Commission directed the platform to cease operations for running an unregistered crypto exchange.
Bybit complied with the directive after being specifically instructed to ensure adherence to all regulatory requirements.
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Despite these challenges, Bybit is actively engaging with Indian regulators to finalize its registration as a digital asset service provider, which it anticipates completing in the upcoming weeks.
The exchange has not provided additional comments regarding the suspension but remains focused on achieving compliance in key markets.
India’s Stance on Crypto Remains Ambiguous
India’s position on cryptocurrencies has been notably ambiguous.
The implementation of stringent crypto taxes in 2022 and the downturn in the crypto market prompted Indian traders to shift to international exchanges, adversely affecting the local crypto industry.
However, trading volumes returned to Indian exchanges following the ban on offshore entities.
India has also prioritized achieving global consensus on establishing crypto policies as part of its G20 presidency in 2023.
The country successfully secured agreement from all G20 members on international guidelines.
Nonetheless, India continues to struggle with rigid crypto tax regulations.
During the announcement of the fiscal year 2024-2025 budget, Finance Minister Nirmala Sitharaman upheld the contentious crypto tax rules.
Despite extensive lobbying from the cryptocurrency sector, which presented substantial evidence advocating for a reduction in the tax-deducted-at-source (TDS) policy from 1% to 0.01%, the current regulations remain unchanged.
The post Bybit Suspends Crypto Trading Services in India Amid Regulatory Changes appeared first on Cryptonews.
