Bybit, one of the world's largest cryptocurrency exchanges, has been fined over $1 million by India’s Financial Intelligence Unit (FIU) for non-compliance with the country’s anti-money laundering laws. The penalty comes after Bybit continued operating in India without the required regulatory registration, prompting authorities to block access to its platform.

The Indian Ministry of Finance confirmed the fine, totaling 9.27 crore rupees ($1.06 million), citing violations of the Prevention of Money Laundering Act (PMLA). Officials stated that Bybit, classified as a Virtual Digital Asset Service Provider (VDA SP), failed to register as a “reporting entity” under the law. Despite this, the exchange expanded its services in India, leading regulators to take action under the Information Technology Act, 2000.

The crackdown follows Bybit’s recent suspension of services in India, a move prompted by increased regulatory scrutiny. At the time, Bybit’s India country manager, Vikas Gupta, expressed optimism about securing a full operations license in the near future. The exchange submitted its Virtual Digital Asset Service Provider (VDASP) registration application on June 26, 2024, in hopes of resuming business legally.

Earlier reports suggested that Bybit had successfully registered with the FIU and settled the fine, based on a company statement shared with Cointelegraph. However, a Bybit spokesperson later retracted that claim, leaving the exchange’s compliance status uncertain.

With India tightening its grip on crypto regulations, the case highlights the growing challenges for global exchanges seeking access to the country’s booming digital asset market.