Fiu action on bybit: The Financial Intelligence Unit – FIU of the Government of India has imposed a fine of Rs 9.27 crore on Bybit Fintech Limited (Bybit) in the case of violation of Money Laundering Act (PMLA, 2002). Also, bybit’s website has been blocked in India, so that this company cannot continue its services.
What are the allegations on bybit?
Bybit is a virtual digital asset service provider (VDA Sp), which offers cryptocurrency services. Under Section 2 (1) of PMla, it is considered ‘reporting entity’. According to the law, it is mandatory for such companies to register in FIU-IN. Bybit continued its business in India without registration.
Violation of rules despite government warning
10 March 2023: FIU issued guidelines related to Anti-Mani Laundering (AML) and Terrorism Financing (CFT). 17 October 2023: It was made mandatory for all VDA SP companies to register. Bybit did not follow these rules.
FIU action and punishment
FIU conducted a detailed investigation against Bybit. FIU-ID Director Mr. Vivek Aggarwal issued an order on 31 January 2025, in which BYBIT was found guilty of several provisions of money laundering laws. Bybit was fined Rs 9.27 crore. FIU blocked the website of Bybit in India through the Ministry of Electronics and Information Technology under the Information Technology Act, 2000.
Government’s strictness on digital asset companies
The government is now increasing strictness on digital asset companies to prevent money laundering and illegal financial transactions. The FIU-Ind had already warned crypto and digital asset companies to follow the law. This action on Bybit is also a big lesson for other companies.
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