Bybit Fined for PMLA Violations: A Lesson in Compliance

The Financial Intelligence Unit-India imposed a Rs 9.27 crore fine on Bybit Fintech Limited for violating its obligations under the PMLA. Bybit, classified as a 'reporting entity,' expanded services in India without mandatory registration, leading to blocked websites and a thorough examination by FIU-IND.

The Financial Intelligence Unit-India (FIU-IND) levied a hefty monetary penalty of Rs 9.27 crore on Bybit Fintech Limited, a virtual digital asset service provider, for failing to comply with the Prevention of Money Laundering Act (PMLA) regulations.

FIU-IND discovered that Bybit had expanded its operations in the Indian market absent the necessary registration as required for reporting entities under the PMLA. This non-compliance prompted the block of Bybit's websites by the Ministry of Electronics and Communication Technology (MEITY) under the Information Technology Act, 2000.

Following a comprehensive review of Bybit's submissions, both written and oral, Director Vivek Aggarwal confirmed the company's liability for multiple PMLA violations. Notably, FIU-IND had earlier issued detailed Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) guidelines for service providers of Virtual Digital Assets.