FIU-IND Fines $1.06 Million to Bybit for Violating PMLA Rules

The Financial Intelligence Unit of India (FIU-IND) has charged $1.06 Million (₹9.27 Crore) as a monetary penalty to a digital service provider and the world’s second-largest crypto exchange Bybit for violating the Prevention of Money Laundering Act (PMLA) 2005.

Bybit is a virtual digital asset (VDA) service provider and, therefore, a reporting entity under PMLA, as per Indian laws. According to reports , the company continued to advance its services in the Indian market without procuring mandatory registration with the FIU-IND.

Further, the finance ministry statement states that Bybit has violated and has ignored the (PMLA) Prevention of Money Laundering (Maintenance of Records) Rules, 2005. FIU-IND has blocked the company’s websites and further has also stopped the firm’s operations under the Information Technology Act, of 2000, through the Ministry of Electronics and Communication Technology (MEITY).

Due to Bybit’s constant and continuous objection FIU-IND Director Vivek Aggarwal found that the firm is chargeable for the various violations. He has also investigated the written and oral submissions of Bybit. 

On January 31, the government authority declared the charges on Bybit under Section 13 for violating the rules of PMLA Act. 

However, Previously on March 10, 2023, FIU-IND has announced the guidelines for individuals who are providing Services related to Virtual Digital Assets, the guidelines are related to the Anti-Money Laundering (AML) and Financing of Terrorism (CFT).