Is Bybit Legal in India? Availability, the 2025 Ban, and Tax

Yes — Bybit is legal and available in India again, operating as an FIU-IND–registered exchange. But the road there was rocky, and a lot of older articles still say "Bybit is banned in India" — which is out of date. Here's the accurate picture. (General information, not tax or legal advice.)

Is it legal? Yes — with a registration and a heavy tax

Crypto trading is legal in India — it's not legal tender, and there's no bespoke crypto licence, but exchanges must register with the FIU-IND (Financial Intelligence Unit) as a "reporting entity" under the PMLA anti-money-laundering rules. Bybit is now on that register. What you can't escape is the tax — covered below.

What happened in 2025 (the ban, and the return)

This is why the "banned" headlines exist — and why they're now stale:

• 12 Jan 2025 — Bybit paused most services for Indian users (leaving withdrawals), citing Indian regulatory action.
• 31 Jan 2025 — FIU-IND issued a ₹9.27 crore (~$1M) penalty for operating as a reporting entity without registration (Section 12(1) PMLA); India's MeitY also blocked Bybit's website.
• ~6–7 Feb 2025 — Bybit settled the fine and registered with FIU-IND, reactivating trading for verified users later in February.
• 8 Sep 2025 — Bybit announced a full resumption of crypto trading with website access restored.

So today Bybit onboards Indian residents (KYC via Aadhaar/PAN), with spot, perpetual futures, options and copy trading available, though some features may differ for Indian users — check on registration.

How crypto is taxed in India

The tax is the real cost of trading crypto in India, and it applies wherever you trade:

• 30% flat tax on gains from virtual digital assets (Section 115BBH), plus surcharge and 4% cess — no deductions except cost, and no loss set-off or carry-forward.
• 1% TDS on transfers (Section 194S) above the threshold (₹50,000/yr for specified persons, ₹10,000 otherwise).
• Budget 2026-27 kept this framework unchanged.

The offshore catch: domestic FIU-registered exchanges deduct the 1% TDS at source and issue statements; offshore exchanges like Bybit historically do not, leaving you to self-report and pay the TDS and 30% tax (Schedule VDA in your ITR).

Bybit vs Indian exchanges

Bybit is a large global venue with deep derivatives — but for smoother INR on/off-ramps and automatic 1% TDS handling, many Indians use FIU-registered domestic exchanges (CoinDCX, CoinSwitch, ZebPay, Mudrex, Giottus). The trade-off is Bybit's product depth vs. domestic tax-compliance convenience. Judge Bybit itself in the Bybit review.

New to the products? See Crypto futures, explained and Bybit fees.

Crypto is high-risk and heavily taxed in India. This is general information, not investment, tax or legal advice — verify the current rules and consult a qualified adviser.