India’s crypto market is facing another shake-up as Bybit, the world’s second-largest centralized exchange by trading volume, announced a temporary halt to its services in the country. Starting January 12, 2025, at 8:00 AM UTC, users from India are no longer be able to open new trades, create accounts, or access products on Bybit’s platform. However, withdrawals remain unaffected, ensuring uninterrupted access to funds.
This decision follows increased regulatory scrutiny by Indian authorities, prompting Bybit to align with compliance measures. The exchange has assured users that this suspension is temporary as they work to finalize registration as a Virtual Digital Asset Service Provider (VASP) with India’s Financial Intelligence Unit (FIU).
What You Need to Know About the Suspension
Key Dates and Restrictions:
- Trading Services Halted: From January 12, you won’t be able to place new orders on crypto or fiat trading pairs. Existing positions will move to Close-Only Mode, allowing you to close but not modify trades.
- Copy Trading and Bots: All trading bots and master-follower relationships will terminate by January 13, 5:00 AM UTC.
- P2P Ads Removed: All INR ads will be removed starting January 12, 8:00 AM UTC.
- Campaigns and Bybit Card: Participation in campaigns and Bybit Card transactions will also be paused.
Bybit clarified that deposits for both crypto and fiat will be restricted during this period.
Context: India’s Stricter Regulatory Environment
India has been ramping up its compliance efforts in the crypto sector, particularly focusing on curbing tax evasion. Bybit’s move follows a broader trend of exchanges either exiting or adapting to India’s regulatory challenges.
- April 2024: OKX exited the Indian market due to increasing regulatory hurdles.
- May 2024: Binance and KuCoin received FIU approval to operate in India. Binance fully resumed operations by August 2024 after obtaining all necessary clearances.
This suspension comes after Bybit faced similar regulatory challenges in France in August 2024, where they halted operations to secure a local license. Just last month, Bybit stopped servicing users from Uzbekistan. On the other hand, the exchange obtained a VASP license in Georgia in November, and full AFSA license in Kazakhstan in September.
Further evidence of Bybit’s high compliance and standards was obvious in September. After Binance, OKX and other exchanges stopped providing services to Turkish users, Bybit stepped up as a regulated and safe alternative in the country. Not only that, but they also doubled down on the market by launching a Sharia-compliant Islamic Account option, an industry-first.
Find crypto exchanges in Turkey
A Temporary Pause, Not the End
Despite the current restrictions in India, Bybit remains optimistic. They are actively collaborating with regulators to secure their VASP license. According to a prominent Indian crypto influencer, “Bybit is likely to resume operations within a few weeks once the licensing process concludes.”
The exchange’s statement reinforces this: “We are committed to complying with all applicable rules and regulations and expect to finalize our registration process soon.”
While Bybit’s services are temporarily restricted, it highlights the growing importance of compliance in India’s crypto market. You can still withdraw funds without interruptions, providing peace of mind during this transitional period.
Top Bybit Alternatives in India
Traders from India still have plenty of safe and reputable options. Whether first-time investors or experienced crypto buyers, several excellent Bybit alternatives remain operational in the country.
1. Binance
The world’s number one exchange is the obvious choice for all types of crypto trading and investing in India. Now fully licensed, Binance offers zero or near zero fee deposits, a vibrant P2P marketplace, and highest level of safety and regulatory compliance.
2. KuCoin
As we mentioned previously in this article, KuCoin already received regulatory approval in India, making it another locally-compliant exchange. Tons of features and cheap fiat deposits and withdrawals make KuCoin an excellent exchange for India’s growing cryptocurrency market.
3. Gate.io
While not locally regulated, Gate.io is a safe and popular alternate CEX in India. Globally, the exchange services 20 million users and is considered a highly reliable option for both beginners and experienced traders.
4. CEX.IO
CEX.IO is also not regulated in India, but has plenty of other regulatory approvals. The exchange is even available in United States, which says volumes about their security and regulatory compliance. Indian traders can rest assured their crypto is safe and sound on this exchange, and we can recommend it as one of the best alternatives in the country.
Crypto investors from India can choose any of the above exchanges as some of the top CEX options. For a more comprehensive list with dozens of additional options, visit our India Crypto Exchanges page.
Conclusion: Stay Informed and Take Action
Bybit’s temporary suspension may force local traders to seek alternatives, at least until Bybit obtains the proper licenses and approvals. As Bybit works toward compliance, this is a good time to explore alternative platforms like Binance or KuCoin, which have already secured regulatory approval.
Keep in mind that withdrawals on Bybit will remain open until further notice, and users who are not actively trading with their funds can even leave them on the exchange for now. Bybit is actively working on getting full regulatory approval in the country, and their timeframe mentions it is only weeks away.
Don’t miss updates—stay informed and prepared for Bybit’s return to the Indian market. For now, you can ensure your funds are fully available for trading by exploring other options.