Bybit crypto exchange has resumed operations in India after having triumphed over huge compliance matters. The exchange had achieved registration with the government which enables it to keep functioning lawfully within one of the world’s largest crypto markets. This comes after India’s Financial Intelligence Unit (FIU) issued a ₹9.27 crore (circa $1.06 million) fine for non-adherence to the Prevention of Money Laundering Act (PMLA).
Background of Compliance Issues
Bybit had suspended Indian operations briefly on the pretext of compliance. The exchange was operating unregistered, as per the FIU report. Consequently, Bybit’s website faced a ban under the Information Technology Act, halting operations in India. Indian user services have resumed up to February 25, 2025, which is a sign of intentions of renewed compliance.
Impact of the Cyberattack
Other than the problem of regulation, Bybit also faced a debilitating cyber attack. On February 21, 2025, hackers from North Korea’s Lazarus Group stole over $1.4 billion worth of Ether-denominated tokens during the attack.
The hack brought out savvy security loopholes in centralized exchanges as it put in motion the precedent for the practicability of heightened use of advanced cybercrime technology in the world of virtual currency.
Fortunately, Bybit immediately ceased the attack. Third-party audit ensured that the exchange had reserves greater than liabilities and customers’ funds were safe. By the act of burning $5.3 billion worth of assets, Bybit CEO Ben Zhou had assured clients that withdrawal resumed and the exchange worked just as effectively.
Strategic Steps To Combat Cybercrime
In response to the hack, Zhou publicly declared war against the Lazarus Group in an effort to recover stolen funds. Bybit initiated a bounty program offering rewards to parties that are in a position to identify or reclaim stolen funds.
Specifically, the initiative provides a 5% reward in the form of freezing stolen money and 10% of recovered bounty monies, which may amount to $140 million. This action demonstrates Bybit’s commitment to combat cyber-attacks and earn users’ trust.
Future of Bybit in India
Bybit’s foray into the Indian market is once again successful, setting the exchange well underway regarding growth in the near future with regulatory uncertainty hovering over it currently. Bybit’s ability to address security and regulatory issues is testimony that the exchange is financially stable as one of the largest world cryptocurrency exchanges. Bybit will surely step up security to prevent such hacks going forward and become financially stronger too.
The cryptocurrency community is watching Bybit’s every move, especially following recent setbacks. Given the volatility inherent in cryptocurrencies, exchanges like Bybit navigate a delicate balance between rigorous regulatory compliance, enhanced security, and user confidence in an increasingly scrutinized landscape.
