In this essay, I will discuss the Is Bybit Legal in India and provide a complete assessment of its present situation.
With the recent block by the Indian government, many are left questioning the platform’s legality and future accessibility.
Many current users can still use the application, but new users face issues. To reveal the complete details, bear with us.
What Is Bybit?
Bybit is a trading exchange in the province of cryptocurrency derivatives. Established in March 2018 and based in the city of Dubai
Bybit is enabled with advanced trading techniques and highly high leverage by global standards, reaching 100x.
The exchange provides users with easy navigation and various security features, such as cold storage for user assets.
Over 10 million people across the globe have accounts with Bybit, and although not accessible to US users because of the lack of certain permissions, it is a widely used platform amongst experienced traders.
Is Bybit Legal in India
Bybit is a well-known cryptocurrency exchange hub. However, its legality in India has become a grey area.
Not long ago, access to Bybit was prohibited by the Indian government, which also ensured that the app would be removed from the app stores.
For now, the app has remained active for the existing users who had previously installed it.
However, according to recent reports, new users in India may have issues using Bybit because of regulations.
This case reveals how users still feel in the country about the cryptocurrency regulations and that they need to be aware of any changes concerning the use of the platform legally.
Regulatory Scrutiny
On 28th December, India’s Financial Intelligence Unit (FIU) identified nine cryptocurrency exchanges defaulting on anti-money laundering laws and asked the IT ministry to shut down their websites.
Apple responded by removing apps connected with these exchanges from the Indian App Store.
Consequently, Bybit also revealed it would end its service in India. They emailed the users that they should close their positions before the end of April.
Challenges for Crypto Exchanges in India
Regulatory Uncertainty
Crypto exchanges operate in an ambiguous environment with no clear regulations. Cryptocurrencies do not have a full comprehensive legal framework from the government, leading to confusion and potential legal pitfalls1.
High Transaction Taxes
The current Tax Deducted at Source (TDS) of 1% discourages investors interested in cryptocurrencies. There is a high tax rate that does not encourage trading as often as necessary, which also affects liquidity.
Security Concerns
Security breaches and hacks are highlighted. WazirX recently had a security breach of up to $235m, indicating the vulnerabilities within the system.
Banking Restrictions
Many banks avoid giving services to crypto exchanges due to regulatory uncertainty. This makes it hard for exchanges to run smoothly or for users to deposit or withdraw funds.
Lack of Investor Protection
When fraud or an exchange collapses, investor rights are not fully protected by law. The absence of these safety nets could discourage people from investing.
Public Awareness and Education
Not everyone in India knows enough about cryptocurrencies, their advantages and disadvantages. If people are uninformed about this subject, it may be a roadblock to growth within the crypto market.
Government’s Cautious Stance
However, the government of India remains cautious despite on-going efforts to work with its partners from across the globe on crypto-regulation.
Finance Minister Nirmala Sitharaman expressed concerns about illegal activities related to cryptocurrencies during the India Today Conclave, citing terrorism financing and drug trafficking as primary concerns.
Moreover, there were no new regulatory updates included in February’s interim budget speech; thus increasing uncertainty for market participants who expected clarity on taxation and compliance.
Conclusion
To sum up, Indians can use Bybit as it is not on the list of restricted countries. It does not hold any regulatory licenses from the Reserve Bank of India or any other authorities in India.
However, Bybit follows international KYC and anti-money laundering policies protecting Indian users.
Still, the most important thing is to be aware of any changes in the regulatory environment in India and make sure all tax requirements concerning the activities involving cryptocurrencies are met.
