Prominent cryptocurrency exchange Bybit has announced that it’s set to temporarily suspend its trading services for users in India starting January 12, citing recent regulatory developments in the country.
The cryptocurrency exchange wrote in a new announcement that from 8 AM UTC on January 12, Indian users will “temporarily be unable to open new trades or access any products” on its platform, with the exception of withdrawals which will remain available.
The exchange added that the restriction comes as it keeps on working closely with Indian regulators to finalize its registration as a Virtual Digital Asset Service provider in the country, which it expects to secure “in the coming weeks.”
The restrictions encompass a broad range of services. Bybit confirmed that no new orders could be placed for any trading products, including for both cryptocurrency and fiat currency pairs.
Existing derivatives positions will be placed in “Close-Only” mode, preventing users from adding to or modifying their positions, although they will retain the ability to close them. Deposits of both cryptocurrencies and fiat currency will also be temporarily halted.
Bybit is notably one of the world’s largest cryptocurrency trading platforms, having seen a spot trading volume of over $8 billion in the last 24-hour period, as well as a derivatives trading volume above $34.7 billion in the same period, according to data from CoinMarketCap.
Bybit’s Ongoing Registration Process
The exchange’s temporary trading halt comes months after India’s Financial Intelligence Unit (FIU) started taking action against several cryptocurrency exchanges operating in the country including Binance for violating the country’s anti-money laundering regulations.
The heightened scrutiny in the country increased pressure on exchanges operating within it to ensure full compliance with local laws, and Bybit’s temporary suspension could be part of its efforts to avoid a similar fate.