Bybit has discontinued operations in India
Bybit Imposes Temporary Restrictions on Indian Users Due to Regulatory Compliance and Tax Obligations
Cryptocurrency exchange Bybit has announced temporary restrictions for Indian users, effective from January 12, 2023. The restrictions are primarily due to India's Goods and Services Tax (GST) regulations, which mandate an 18% GST on crypto-related service fees and transactions starting from July 7, 2025.
Bybit has notified its users about the upcoming restrictions in a notification. The exchange stated that these measures are to ensure compliance with all applicable rules and regulations. As a result, Indian users will temporarily be unable to open accounts, trade, or use other platform products on Bybit.
The restrictions also prevent Indian users from trading cryptocurrency on Bybit. Bybit's restrictions for Indian users do not affect the withdrawal of funds. However, Indian users will temporarily be unable to access any products on the Bybit platform, including opening new positions or using other platform products.
In addition to the GST regulations, India's stringent tax framework and regulatory requirements have also led Bybit to take these steps. Since 2022, India has imposed a 30% capital gains tax and 1% TDS on crypto transactions.
As part of regulatory compliance and increased tax burden, Bybit has discontinued certain legacy products and services for Indian users effective July 9, 2025. These include the Bybit Card, legacy crypto loans, and trading bots. The Bybit Card will be blocked by July 17, 2025, and users must settle crypto loans by the same date.
Bybit's decision to impose these restrictions reflects its strategy to align operations with Indian tax laws and regulatory scrutiny. In August, Bybit announced the cessation of its activities in France due to tightening regulatory requirements ahead of the MiCA's implementation.
Bybit plans to complete its registration as a virtual asset service provider in India. The exchange is committed to providing a seamless experience for its users once the regulatory environment becomes more favourable.
In summary, the imposition of the 18% GST on crypto service fees combined with India’s stringent tax framework and regulatory requirements has led Bybit to temporarily restrict or discontinue some services to its Indian user base. Bybit encourages its Indian users to stay updated on the latest regulatory developments and to comply with all applicable rules and regulations.
[1] Bybit Announces Temporary Restrictions for Indian Users
[2] India's GST Council Approves 18% Tax on Crypto Service Fees
[3] India Imposes 30% Capital Gains Tax and 1% TDS on Crypto Transactions
[4] Bybit to Block Bybit Card, Discontinue Legacy Crypto Loans and Trading Bots for Indian Users
[5] Securities Commission of Malaysia Accuses Bybit of Operating Without a License
[1] Bybit's temporary restrictions for Indian users are aligned with the industry's response to India's strict tax and regulatory obligations, demanding compliance with fintech regulations, including an 18% GST on crypto service fees.
[2] As fintech companies like Bybit grapple with regulatory compliance, the technology sector continues to adapt, with the finance industry embracing the challenging tax landscape in India, where a 30% capital gains tax and 1% TDS have been imposed on crypto transactions.
