Synopsis
The government has imposed a significant penalty of Rs 9.27 crore on Bybit Fintech Limited for violating the Prevention of Money Laundering Act, 2002. This action follows Bybit's failure to register with the Financial Intelligence Unit, leading to its operations being blocked in India.Key Takeaways
- Bybit fined Rs 9.27 crore for PMLA violations.
- The penalty was imposed by the Financial Intelligence Unit-India (FIU-IND).
- Bybit expanded operations without necessary registration.
- Temporary service restrictions for Indian users were announced.
- Binance previously faced similar penalties and resumed operations after registration.
New Delhi, Feb 1 (NationPress) The government has imposed a penalty of Rs 9.27 crore on Bybit Fintech Limited (Bybit), a virtual digital asset service provider (VDA SP), for breaching the Prevention of Money Laundering Act, 2002 (PMLA).
The Financial Intelligence Unit-India (FIU-IND) levied a total monetary penalty of Rs 9,27,00,000 on Bybit due to “violations of its obligations under the PMLA.”
According to the agency, Bybit continued to broaden its services in the Indian market without obtaining the necessary registration with the FIU-IND.
“The ongoing and repeated non-compliance led FIU-IND to restrict their websites to halt operations under the Information Technology Act, 2000, via the Ministry of Electronics and Communication Technology (MEITY),” stated the Ministry of Finance.
Previously, FIU-IND had released extensive Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) Guidelines for Reporting Entities providing services tied to virtual digital assets on March 10, 2023.
Additionally, a comprehensive circular about the registration of Virtual Digital Asset Service Providers as reporting entities was issued on October 17, 2023.
Following a meticulous review of both written and oral presentations from Bybit, FIU-IND determined Bybit guilty of the accusations related to multiple violations.
Earlier this month, Bybit announced a temporary suspension of its services for users in India.
In March 2023, the government included crypto businesses under the PMLA regulations, requiring them to report suspicious transactions and implement customer due diligence, among other obligations. Subsequently, all virtual digital asset service providers were instructed to register as reporting entities with the FIU.
Last year, prominent crypto exchange Binance paid Rs 18.82 crore to the government agency and resumed its operations in the country after completing its registration.
