Crypto exchange Bybit said it will temporarily suspend its services for its users in India in response to regulation in the country.
The Dubai based company intends to prevent its customers in India from being able to open new trades or access products on the platform from Sunday. “The only exception will be withdrawals,” the company said in a blog post on Friday.
The stoppage may be short-lived. Bybit said it is working to finalize its registration as a Virtual Digital Asset Service Provider under India law, “which we expect to secure in the coming weeks.”
“We are committed to resuming full service as soon as we have completed our registration process with the FIU,” it added.
In March 2023, India mandated that crypto companies would have to register with the Financial Intelligence Unit (FIU) that tackles anti-money laundering matters. Providers also had to comply with other processes under the Prevention of Money Laundering Act (PMLA) such as verifying customers.
India’s finance ministry told CoinDesk last year that the rules applied to offshore exchanges and appropriate action would be taken against non-compliant off-shore platforms. CoinDesk reached out to Bybit for a comment.