Crypto exchange Bybit has officially resumed trading services in India after securing registration with the country’s Financial Intelligence Unit (FIU-IND).
The exchange announced on February 25 that it is restoring full access for existing users and gradually onboarding new customers. This marks a definite regulatory milestone for Bybit, which had previously suspended its services in India due to compliance issues.
The Indian government took action after discovering that Bybit had been expanding its services in the country without proper registration. This led to regulatory penalties and the blocking of its website under the Information Technology Act.
The initial suspension came after Bybit was fined 9.27 crore rupees ($1.06 million) on January 31 for violating India’s Prevention of Money Laundering Act (PMLA).
The exchange, which operates across 1,174 markets and serves over 60 million users globally, seeks to regain its footing in India’s expanding crypto space. In fact, a recent report shows that the Indian crypto market could expand from $2.5 billion in 2024 to over $15 billion by 2035 at an annual growth rate of 18.5%.
After paying the fine and registering with the FIU, Bybit returned to India with a renewed commitment to compliance, aligning itself with India’s new cryptocurrency regulations.
On February 21, 2025, the exchange was targeted by the notorious Lazarus Group, a North Korean-affiliated hacking collective. The breach led to the theft of over $1.4 billion in Ethereum (ETH)-related tokens, marking the single largest crypto heist recorded to date.
Bybit’s regulatory comeback in India follows a period of turbulence, including one of the largest security breaches in cryptocurrency history.
The group, known for orchestrating high-profile cyber heists—including attacks on Ronin and WazirX—once again demonstrated its ability to bypass centralized exchange security mechanisms.
The breach’s impact was immediate and severe. In the aftermath of the attack, Bybit experienced a major drop in user assets, with withdrawals exceeding $5.3 billion.
Investigations revealed that the Lazarus Group exploited vulnerabilities in Bybit’s multi-signature security protocols to gain unauthorized access to an Ethereum cold wallet.
According to a February 13 report, Coinbase is exploring a return to the Indian market after more than a year away, engaging with local regulators, including the Financial Intelligence Unit (FIU). While the exchange has not confirmed FIU registration, a spokesperson stressed Coinbase’s commitment to complying with India’s regulatory framework.
Other exchanges that were penalized for operating in India are now looking to regain a foothold in the country as well.
Similarly, a February 20 report shows that Kraken is also planning a return to the Indian crypto market. It has appointed Vishesh Khurana, co-founder of Shiprocket, as an advisor to lead its local operations.
By June 2022, new user registrations had stopped, and in September 2023, Coinbase officially terminated accounts that failed to meet updated compliance standards.
Coinbase initially launched in India in April 2022 but quickly faced regulatory pressure from the Reserve Bank of India (RBI). This led to the suspension of UPI payments and an eventual halt in trading services.