Is Bybit Legal in India 2026?
Bybit is FIU-IND registered as a VDA Service Provider under PMLA. 1% TDS auto-deducted on all USDT/INR P2P trades. Full feature access for Indian users.
India regulatory framework
FIU-IND (under PMLA) registers VDA service providers; 49 exchanges registered as of FY 2024-25. RBI is cautious but legally cannot ban P2P trading.
Tax: Flat 30% on gains under Section 115BBH + 4% cess (effective 31.2%); 1% TDS on every transfer under Section 194S above ₹50,000/year. No loss offset, no indexation.
Bybit on the India market
Bybit P2P is consistently more price-aggressive than Binance — merchants undercut by 0.1-0.4% to win volume, especially on RUB and TRY. Bybit dominated post-sanctions Russia after Binance/OKX exited; deep RUB liquidity is the standout. 0% trading fees for both makers and takers in most jurisdictions. KYC mandatory above small daily limits.
Fees + KYC: 0% trading fees for both makers and takers across most P2P markets. KYC required above small daily limits (typically $1k/day unverified). FIU-IND registered in India.
Cheapest BUY + highest SELL across Bybit's INR P2P book.
Compare Bybit against 8 other P2P exchanges for the INR market.
Frequently asked questions
Is Bybit legal in India in 2026?+
Yes — legal. Bybit is FIU-IND registered as a VDA Service Provider under PMLA. 1% TDS auto-deducted on all USDT/INR P2P trades. Full feature access for Indian users.
Is Bybit FIU-IND registered?+
Yes. Bybit is registered with FIU-IND (Financial Intelligence Unit India) under the Prevention of Money Laundering Act (PMLA). 49 crypto exchanges were FIU-IND registered as of FY 2024-25 — Bybit is one of them. Registration means the exchange must perform KYC, monitor transactions, and file Suspicious Transaction Reports (STRs).
Do I need to pay tax on Bybit trades in India?+
Yes. Flat 30% on gains under Section 115BBH + 4% cess (effective 31.2%); 1% TDS on every transfer under Section 194S above ₹50,000/year. No loss offset, no indexation. Bybit as an FIU-IND registered exchange auto-deducts the 1% TDS at trade time on USDT/INR P2P trades.
Is Bybit banned in India?+
No. Bybit operates legally in India. Bybit is FIU-IND registered as a VDA Service Provider under PMLA. 1% TDS auto-deducted on all USDT/INR P2P trades. Full feature access for Indian users.
What KYC does Bybit require for India users?+
Standard FIU-IND-aligned KYC: government ID (PAN + Aadhaar in India), selfie verification, and proof of address for higher trading tiers. 0% trading fees for both makers and takers across most P2P markets. KYC required above small daily limits (typically $1k/day unverified). FIU-IND registered in India.
Is USDT/INR P2P trading legal in India?+
Yes. The Supreme Court struck down RBI's banking-channel ban in March 2020 (IAMAI vs RBI). No statute since has criminalised crypto trading. Exchanges must register with FIU-IND under PMLA — 49 exchanges did so in FY 2024-25.