Bybit in India: legal status, INR deposits, tax, bonus

Updated 2026-09-06

India is one of the largest markets where Bybit operates, and also one where the rules changed sharply in 2025. This page sets out the current position for an Indian user: the regulatory status, how money actually gets in and out in rupees, what the tax regime does to trading, and how the welcome bonus fits. Numbers are tied to official sources and dated at the bottom.

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Regulatory status

Indian law requires virtual digital asset service providers to register with the Financial Intelligence Unit (FIU-IND) as reporting entities and follow its anti-money-laundering rules. Bybit did not have that registration at the start of 2025, suspended most services for Indian users in January, registered in February and paid a penalty, and announced full restoration of services in September 2025 with stricter KYC. Since then it has operated in India as a registered entity.

For a user, the practical consequences are that identity verification is strict and mandatory before any reward or withdrawal, and that Bybit reports as Indian law requires. Neither is a reason to avoid the exchange; both are the reason it is allowed to serve you.

Getting rupees in

Bybit does not accept INR bank deposits directly. The route is the P2P market inside the app: you choose a verified seller offering USDT for INR, pay them by UPI, IMPS or bank transfer, and the seller releases USDT into your Bybit account. There is no network fee on this route, so 8,500 rupees' worth of USDT arrives as exactly that.

Two habits keep P2P safe. Pay only through the method shown in the order, with the exact reference, and mark "paid" only after the money has actually left your account. Never release crypto as a seller until the INR is visibly in your bank, whatever the counterparty says in chat. The deposit guide covers the on-chain route if you already hold crypto elsewhere, and the network and memo checks that make a crypto deposit irreversible if wrong.

Getting out works the same way in reverse: sell USDT for INR on P2P, receive the rupees by UPI or bank transfer. The withdrawal guide explains limits and the whitelist settings worth turning on first.

Tax: the numbers that change everything

Two provisions of the Income-tax Act shape crypto trading in India. Section 115BBH taxes income from the transfer of virtual digital assets at a flat 30%, with no deduction other than the cost of acquisition and no set-off of losses against other gains or other income. Section 194S imposes a 1% tax deducted at source on transfers above an annual threshold, which depends on the category of the payer.

The combined effect is that active trading in India is far more expensive after tax than the exchange fee suggests. Bybit's base spot fee is 0.1% per side; the 1% TDS on each qualifying transfer is ten times that, and it is deducted whether the trade made money or not, to be reclaimed at filing. A strategy of many small trades that would be marginal elsewhere is negative in India before the 30% on gains is counted. This is the single most important fact on this page, and it is why a chartered accountant who knows VDA rules is worth the fee before you start, not after. Nothing here is tax advice.

The welcome bonus for Indian users

Bybit's welcome programme is global and attaches to any new account registered through a referral link or code where Bybit serves the user. India is not on Bybit's restricted list, and Indian users registering through the button on this page get the same programme: a $100 sign-up bonus after registration and the starter tasks, 10 USDT for a first deposit of at least 100 USD within seven days (a P2P purchase counts), 15 USDT for 500 USD of trading volume within thirty days, and the ladder above that, capped at $30,020 in total. The claim guide puts the steps in the order the deadlines require, and the referral code page lists every rung.

Two India-specific notes. Verification takes longer than elsewhere because of the stricter KYC Bybit adopted for India; start it immediately after registering, since the seven-day deposit clock does not wait. And rewards are trading bonuses in the rewards hub, not INR; using them means trading, and trading means the tax regime above.

What to check before you register

Bybit's own app or bybit.com only; the official channels guide lists the genuine addresses, because "Bybit India" phishing pages exist. Keep the PAN and Aadhaar-linked details ready for KYC and make sure the name on the account matches them exactly. And read the fees guide with the TDS figure in mind, so the trading you plan is trading that survives the tax.

Frequently asked questions

Is Bybit legal in India?
Bybit is registered with India's Financial Intelligence Unit (FIU-IND) as a reporting entity, which is the registration Indian law requires of virtual digital asset service providers. It resumed full services for Indian users after registering and paying a penalty for the period it operated without it.
How do I deposit INR on Bybit?
Through Bybit's P2P market — you buy USDT from a verified seller and pay in INR by UPI, IMPS or bank transfer. The USDT lands in your Bybit account with no network fee. Bybit does not take INR bank deposits directly.
How is crypto taxed in India?
Income from transferring virtual digital assets is taxed at a flat 30% under Section 115BBH, with no deduction except the cost of acquisition and no set-off of losses. A 1% TDS applies on transfers above the annual threshold under Section 194S. Talk to a chartered accountant for your own situation; this page is not tax advice.
Does the welcome bonus apply to Indian users?
The welcome programme is Bybit's global programme, attached to any new account registered through a referral link or code where Bybit serves the user. India is not on Bybit's restricted list. Rewards land in the rewards hub under Bybit's terms.

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