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Is Bybit Legal in India in 2025? Full Regulatory Breakdown
Is Bybit Legal in India in 2025? Full Regulatory Breakdown
India is one of the fastest-growing crypto markets in the world, but regulatory uncertainty often leaves traders and investors confused. In 2025, many are asking: "Is Bybit legal in India?" This comprehensive guide will break down the legal status of Bybit, provide context on India's crypto regulations, and help you decide whether trading on Bybit is safe and compliant.
TL;DR: Bybit is not banned in India, but it has faced regulatory actions. As of 2025, it is registered with the Financial Intelligence Unit (FIU-IND) after paying a substantial fine. Traders should exercise caution and ensure full KYC compliance.
🔒 Quick Answer: Is Bybit Legal in India?
Yes, but not fully licensed.
Bybit is accessible to Indian users in 2025. While it isn't officially licensed by the Securities and Exchange Board of India (SEBI), it has registered with the FIU, which is India's anti-money laundering watchdog.
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📃 Summary Table
Status Description ❌ SEBI License Not granted ✅ FIU Registration Confirmed (2025) ⛔ RBI Ban No formal ban ✅ User Access Available with KYC
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🔜 What Happened Between Bybit and Indian Regulators?
In December 2023, the Indian government issued show-cause notices to several global cryptocurrency exchanges, including Bybit, Binance, and KuCoin. The issue was non-compliance with India's Prevention of Money Laundering Act (PMLA).
🇮🇳 The Fine and Aftermath
Bybit was fined ₹9.27 crore (~$1.1 million USD) for failing to register under the Financial Intelligence Unit.
Instead of exiting the Indian market, Bybit chose to pay the fine and comply. By February 2025, it successfully registered with FIU-IND and implemented new KYC/AML mechanisms to meet Indian standards.
✅ Result: FIU Registration Confirmed
This compliance means Indian users can now:
Access Bybit from Indian IP addresses
Register accounts with Indian documents
Trade with INR pairs (via P2P)
💸 Understanding India's Crypto Regulatory Landscape
India has a grey-zone approach to cryptocurrency regulation:
Not banned: Cryptocurrency is not illegal.
Not regulated: No clear framework under SEBI or RBI for crypto trading.
Taxed: 30% tax on crypto gains + 1% TDS per transaction.
Key Regulatory Bodies:
SEBI – Oversees securities, no authority over crypto yet.
FIU-IND – Handles AML/KYC compliance.
RBI – Can restrict banking services to crypto exchanges, but hasn't banned them.
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🛡️ Is It Safe to Use Bybit in India?
Pros:
✅ Registered with FIU
✅ Global exchange with strong liquidity
✅ Advanced trading tools (derivatives, leverage, staking)
✅ User funds are secured with multi-signature wallets
Cons:
❌ No SEBI license = limited local protection
❌ Subject to future policy changes
❌ Higher risk of regulatory crackdowns compared to Indian exchanges
Recommendations:
Complete full KYC verification
Don’t use VPNs or fake documents
Declare your gains for tax purposes
🧼 Alternatives to Bybit in India
If you prefer exchanges licensed or based in India:
Exchange Regulatory Status Features CoinDCX Indian entity, complies with PMLA INR pairs, spot & margin WazirX Binance-linked, registered in India UPI deposit, beginner friendly ZebPay One of the oldest Secure wallet, limited tokens Bitbns Indian native platform Innovative products
But for low fees, high liquidity, and global access, Bybit remains a top choice
🌐 SEO Keyword Embeds in Context
Is Bybit banned in India? No, it's not banned. It has paid fines and now operates under FIU oversight.
Bybit KYC India: Indian users must complete full KYC with Aadhaar/PAN.
Crypto trading laws in India: PMLA applies, and tax regulations are enforced.
Bybit India regulation: While not SEBI-licensed, it's legally accessible under FIU registration.
Bybit penalty India: The ₹9.27 crore fine was paid in early 2025.
📝 Final Verdict: Is Bybit Legal in India in 2025?
Yes, you can use Bybit in India in 2025 — but with caveats. While not regulated by SEBI or RBI, Bybit has taken steps to comply with India’s money laundering laws by registering under FIU-IND.
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🎉 Frequently Asked Questions (FAQ)
❓ Is Bybit banned in India?
No. Bybit was fined for non-compliance but has since registered with FIU.
❓ Can Indians trade derivatives on Bybit?
Yes, Indian users can trade futures and options on Bybit after KYC.
❓ Is Bybit a safe crypto exchange?
Yes. It uses industry-grade security, cold wallets, and real-time monitoring.
❓ Do I need to pay tax when using Bybit in India?
Yes. Crypto profits are taxed at 30%, with 1% TDS applicable on each trade.
❓ What if I use a VPN to access Bybit?
Not recommended. Bybit supports Indian users directly — VPNs may breach their TOS.
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