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Financial Intelligence Unit-India (FIU-IND) has imposed a monetary penalty of ₹9.27 crore on Bybit Fintech Limited, a Virtual Digital Asset Service Provider (VDA SP), for violating compliance obligations under the Prevention of Money Laundering Act, 2002 (PMLA). As a ‘reporting entity’ under Section 2(1)(wa) of the PMLA, Bybit continued to expand its services in India without securing mandatory registration with FIU-IND. The non-compliance led to the blocking of its website under the Information Technology Act, 2000, through the Ministry of Electronics and Information Technology (MEITY). FIU-IND had previously issued Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) guidelines for Virtual Digital Asset Service Providers on March 10, 2023, followed by a circular on mandatory registration on October 17, 2023. After reviewing Bybit’s written and oral submissions, FIU-IND Director Shri Vivek Aggarwal found the company guilty of multiple violations under the PMLA and associated rules. The penalty was imposed on January 31, 2025, under Section 13 of the PMLA, reinforcing the regulatory framework for digital asset service providers in India.

Ministry of Finance

FIU-IND imposes monetary penalty of Rs. 9 crore 27 lakhs on Virtual Digital Asset Service Provider Bybit Fintech Limited (Bybit)

Posted On: 31 JAN 2025 6:54PM by PIB Delhi

The Financial Intelligence Unit-India (FIU-IND) in furtherance of the powers conferred upon the Director FIU-IND under Section 13(2)(d) of the Prevention of Money Laundering Act, 2002 (as amended) (“PMLA”) has imposed a monetary penalty of Total ₹9,27,00,000 (Nine crore twenty-seven lakh rupees) on Bybit Fintech Limited (Bybit) a Virtual Digital Asset Service Provider (VDA SP) with reference to the violations of its obligations under the PMLA read with the Prevention of Money Laundering (Maintenance of Records) Rules, 2005 (“PML Rules”) issued thereunder and applicable guidelines and advisories issued by the Director FIU-IND.

As a Virtual Digital Asset Service Provider (VDA SP), Bybit is classified as a ‘reporting entity’ under Section 2(1)(wa) of the Prevention of Money Laundering Act (PMLA).Bybit kept expanding its services in the Indian market without securing mandatory registration with the FIU-IND. The persistent and continuous non-compliance caused FIU-IND to block their websites to stop operations under the Information Technology Act, 2000 through the Ministry of Electronics and Communication Technology (MEITY).

It is noteworthy that FIU-IND had previously issued comprehensive Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) Guidelines for Reporting Entities offering Services related to Virtual Digital Assets on March 10, 2023. Furthermore, a detailed circular regarding the registration of Virtual Digital Asset Service Providers as reporting entities was issued on October 17, 2023.

After conducting a thorough examination of both written and oral submissions from Bybit, Shri Vivek Aggarwal, the Director of FIU-IND, found Bybit liable of the charges for various violations. In an order dated January 31st, 2025, and exercising authority under Section 13 of the PMLA, it was unequivocally established that Bybit was in violation of Section 12(1) of the PMLA read with Rule 2(1)(h), Rule 7(2), Rule 8(2) Rule 8 (4), Rule 3(1)(D) and Rule 7(3) of PMLR, 2005. Consequently, a total penalty of Rs. 9,27,00,000 was imposed on Bybit.

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