Bybit Faces 18% GST on Crypto Services in India as Regulatory Pressure Intensifies

India's cryptocurrency sector is under increased regulatory scrutiny as the government imposes an 18% Goods and Services Tax (GST) on digital asset transactions, specifically targeting services provided by Bybit. Effective July 7, 2025, the tax applies to spot trading, derivatives, yield products, and payment solutions offered to Indian users. This move adds to the existing financial burdens in the crypto space, including a 30% capital gains tax and 1% Tax Deducted at Source (TDS) on sales. The new GST levy signals a tightening grip on cryptocurrency operations in India, potentially impacting market participation and innovation. Bybit, as a major player in the crypto exchange landscape, is directly affected by these fiscal measures, which could influence its operational strategies and user engagement in the region. The broader implications for India's crypto ecosystem remain to be seen as stakeholders adapt to the evolving regulatory framework.

India Imposes 18% GST on Crypto Services, Tightening Regulatory Grip

India's cryptocurrency landscape faces renewed pressure as authorities enforce an 18% Goods and Services Tax (GST) on digital asset transactions. The levy, effective July 7, 2025, targets all services offered by Bybit to Indian users—spanning spot trading, derivatives, yield products, and payment solutions. This development compounds existing fiscal burdens including a 30% capital gains tax and 1% TDS on sales.

The sweeping tax regime eliminates access to crypto lending products and exchange-branded payment cards, constraining financial innovation. Bybit's compliance mirrors broader tensions between India's regulatory approach and the crypto sector's growth ambitions. Where competing financial hubs like Dubai and Singapore court digital asset firms, Delhi continues prioritizing revenue collection over ecosystem development.

Bybit Report Reveals MSTR Trading at 68% Premium as Leveraged Bitcoin Proxy

Bybit's latest TradFi x Crypto Report sheds light on Strategy (NASDAQ: MSTR), the Bitcoin-focused holding company formerly known as MicroStrategy. The analysis uncovers a complex valuation dynamic, with MSTR trading at a 68% premium to its underlying Bitcoin treasury value—a $107 billion market cap built on holdings representing 2.8% of total BTC supply.

Quantitative models suggest potential undervaluation, with fair value estimates at $468 per share versus current $384 levels. The report advises investors to view MSTR as a high-beta BTC proxy rather than through its legacy software operations. Conservative leverage management—maintaining an 11.46% loan-to-value ratio—provides cushion against volatility, though untested in severe market downturns.