Cessation of Services Temporarily by Bybit in India
Bybit, a popular cryptocurrency exchange, has announced temporary restrictions for users based in India, effective from January 12. These restrictions are a response to regulatory requirements in India and aim to ensure the exchange's full compliance with all applicable rules and regulations.
The temporary measures include blocking the Bybit Card, discontinuing legacy crypto loans, and trading bots for Indian users. Additionally, an 18% Goods and Services Tax (GST) will be implemented on trading and service fees for Indian users, which will be deducted directly from user assets. This move aligns with India’s legal requirement for virtual asset service providers to charge GST to residents.
The restrictions do not affect existing accounts or positions for Indian users on Bybit. However, Indian users will temporarily be unable to open new positions or access any of Bybit's products on the platform.
Bybit's decision to impose these restrictions is part of a broader effort to comply with India’s existing capital gains taxes (30%) and TDS (1%) on crypto transactions. The exchange representatives have also stated their plans to complete registration as a virtual asset service provider in India.
It is important to note that the MiCA framework, a regulatory framework for cryptocurrencies and digital assets in the European Union, is not mentioned as a reason for the temporary restrictions for Indian users on Bybit. Similarly, the Securities Commission of Malaysia's accusation and order for Bybit to cease operations do not seem to be directly related to the temporary restrictions for Indian users.
Users are advised to monitor official Bybit and regulatory announcements for detailed registration status and compliance updates. As India enforces its virtual asset service provider framework, Indian users can expect continued compliance with Indian regulations and possible further changes.
In a separate announcement, Bybit also mentioned that it would discontinue services in France in August, due to tighter regulatory requirements in preparation for the MiCA framework. However, the MiCA framework is not mentioned as a reason for the temporary restrictions for Indian users on Bybit.
[1] Bybit Announces Temporary Restrictions for Indian Users (2023) - [Link to source] [2] Bybit to Implement 18% GST on Trading and Service Fees for Indian Users (2023) - [Link to source] [3] Bybit Discontinues Services in France Ahead of MiCA Framework (2023) - [Link to source] [4] India's Regulatory Environment and Bybit's Compliance (2023) - [Link to source]
- The temporary restrictions imposed by Bybit on Indian users also encompass the implementation of a 18% Goods and Services Tax (GST) on trading and service fees, aligning with India’s legal requirement for virtual asset service providers.
- Amidst ongoing compliance efforts, Bybit has acknowledged its plans to complete registration as a virtual asset service provider in India, ensuring adherence to the country's existing capital gains taxes and TDS on crypto transactions.
