The Indian crypto market is going through a new regulatory phase. After the strict stance of the Finance Ministry, now crypto exchanges have to focus more on compliance and transparency. In this context, Bybit’s registration with Financial Intelligence Unit (FIU) India is a big development.

But the question is whether this will make everything smooth for Bybit or will it bring new challenges? Let’s understand this issue in a little detail.

Bybit: A new step on the path of compliance

Bybit announced on 6 February that their registration with FIU has been completed. This means that the exchange is now officially trying to operate under the Indian regulatory framework. Bybit also confirmed that they have resolved the regulatory issues they faced earlier and have also paid a monetary fine.

This step shows their commitment that they are serious about following the rules of the Prevention of Money Laundering Act (PMLA). Also, Bybit has promised to strengthen Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) measures.

Finance Ministry had imposed a ban

The interesting thing is that Bybit’s announcement came when the Indian Finance Ministry had already imposed a ban on the exchange a few hours ago. The Ministry had accused Bybit of violating AML laws, after which the exchange was blocked.

Bybit says that they have now completed all the regulatory requirements, but will the Finance Ministry accept this registration and remove the ban? This is still a big question.

Promotion of Crypto Education and Web3 Ecosystem

Bybit is not only working on compliance, but is also working to strengthen the Indian crypto ecosystem. The exchange has collaborated with Bharat Web3 Association (BWA) and Indian universities to promote crypto education.

This step appears to be part of a long-term strategy in which Bybit wants to strengthen its presence in the Indian market. Education and awareness can make it relatively easy to handle regulatory challenges.

Will FIU registration set everything right?

FIU registration is a positive step, but it does not mean that the challenges are over. The Indian government is still closely monitoring crypto exchanges. Binance and some other foreign exchanges have also faced similar issues.

Bybit will now have to ensure that its AML and compliance measures remain transparent on a continuous basis. If they actively engage with Indian authorities and maintain compliance, it will be possible for them to regain a strong presence in the market.

Conclusion: What will be Bybit’s next strategy?

Bybit’s FIU registration is a mixed signal for the Indian crypto market. On one hand, it shows that exchanges are ready to follow India’s rules, but on the other hand, it also makes it clear that the government’s stance is still strict.

It will be interesting to see in the coming days what the final decision of the Finance Ministry is—will Bybit be able to resume full-fledged operations in India or will new hurdles arise?

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