Bybit Faces Regulatory Concerns in India
Bybit, a popular crypto exchange, has encountered a significant setback in the Indian market. On Friday, March 22, the Bybit app was removed from the Apple iOS App Store due to increasing regulatory concerns in India’s Web3 domain. Speculations about a regulatory crackdown on Bybit in India have also been circulating on social media platforms.
Bybit App Disappears from Apple App Store
The sudden disappearance of the Bybit app from the Apple App Store has surprised the crypto community. The exact cause behind this development is still unknown, but many believe it is a result of the growing regulatory uncertainty in India.
Pushpendra Singh, co-founder of Smart View AI, took to social media and stated, “Due to regulatory uncertainty, Today #Bybit crypto exchange app has been removed from the Apple App Store in India.” However, the Bybit app is still available on the Google Play Store for Android users.
It’s important to note that the Bybit Pro app is currently accessible on the Apple App Store. Additionally, users who have already downloaded Bybit on iOS or Android have not experienced any issues so far. Furthermore, the Bybit website URL can still be accessed without any problems.
Nevertheless, Bybit’s removal from the App Store is a significant development amidst the regulatory concerns in India. This move has sparked speculations about the potential actions regulators might take against Bybit. Furthermore, OKX is also preparing to shut down its operations in India.
Action Taken by FIU Against Foreign Crypto Exchanges
In late December 2023, the Financial Intelligence Unit (FIU) initiated actions against foreign crypto exchanges operating in India. Notices were sent to prominent platforms such as Binance, Gate.io, Kucoin, and Huobi, accusing them of illegal operations within India through offshore entities. These notices were issued under Section 13 of the Prevention of Money Laundering Act, 2002.
As a result of this regulatory move, virtual digital asset service providers came under scrutiny within the Anti Money Laundering/Counter Financing of Terrorism (AML-CFT) framework. The FIU highlighted the exchanges’ failure to fulfill reporting obligations to the Indian government, despite claiming compliance with Indian law.
In response, the FIU urged the Ministry of Electronics and Information Technology (MEITY) to block the websites of the notified crypto exchanges within a two-week timeframe. Consequently, in January 2024, the website URLs and applications of Binance, OKX, KuCoin, and others became inaccessible. These CEX applications also disappeared from the Google Play Store and Apple App Store, similar to what has now happened with Bybit.
Concerns Within the Web3 Community
The recent crackdown on foreign crypto exchanges has left the Web3 community perplexed. Users have reported being unable to access platforms like Binance, KuCoin, Gate.io, OKX, and several others. Bybit was one of the digital currency trading platforms relied upon by these users. Therefore, if Bybit were to leave India or face a ban, it would significantly impact these users.
Speculations About Future Steps
Bybit’s removal from the Apple App Store has raised questions about what actions regulators might take next. The crypto community is eagerly awaiting updates regarding the future of Bybit in India.
Given the ongoing regulatory concerns and crackdowns on foreign exchanges, it is essential for crypto enthusiasts in India to stay updated on any developments regarding Bybit’s status in the country.
Hot Take: Bybit’s Departure Raises Concerns
Bybit’s sudden removal from the Apple App Store in India has triggered concerns within the crypto community. This move highlights the increasing regulatory uncertainty surrounding crypto exchanges in the country.
With OKX also planning to shut down its operations in India, it is evident that foreign exchanges are facing significant challenges in navigating the regulatory landscape. Crypto users in India must closely monitor these developments and adapt accordingly.
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