FIU slaps Rs 9.27 crore penalty on crypto platform Bybit over PMLA violations

New Delhi: The government has slapped a penalty of Rs 9.27 crore on Bybit Fintech Limited (Bybit), a virtual digital asset service provider (VDA SP) over Prevention of Money Laundering Act, 2002 (PMLA) violations.

The Financial Intelligence Unit-India (FIU-IND) imposed a monetary penalty of total Rs 9,27,00,000 on Bybit, “with reference to the violations of its obligations under the PMLA”.

Bybit kept expanding its services in the Indian market without securing mandatory registration with the FIU-IND, according to the agency.

“The persistent and continuous non-compliance caused FIU-IND to block their websites to stop operations under the Information Technology Act, 2000 through the Ministry of Electronics and Communication Technology (MEITY),” said the Ministry of Finance.

FIU-IND had previously issued comprehensive Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) Guidelines for Reporting Entities offering Services related to virtual digital assets on March 10, 2023.

Furthermore, a detailed circular regarding the registration of Virtual Digital Asset Service Providers as reporting entities was issued on October 17, 2023.

After conducting a thorough examination of written and oral submissions from Bybit,, FIU-IND found Bybit liable of the charges for various violations.

Earlier this month, Bybit announced a temporary restriction on its services for Indian users

In March 2023, the government brought crypto businesses under the provisions of the PMLA, mandating them to report suspicious transactions and conduct customer due diligence among others. Later, all virtual digital asset service providers were asked to register as reporting entities with the FIU.

Last year, leading crypto exchange Binance paid Rs 18.82 crore to the government agency and resumed its operations in the country after registering with it.

—IANS