🔔 India’s USDT premium doubles as regulatory action tightens supply
🔖 India’s USDT premium has climbed to more than 8.5%, more than twice its usual level, after enforcement action against crypto remittance firms has disrupted the domestic supply of the stablecoin. According to The Economic Times, Tether’s USDT traded at 102.88 Indian rupees on local crypto platforms over the weekend, while the USD-INR interbank rate closed at 94.65 rupees, creating a gap that is usually limited to around 3% to 4%.
🌐 The USDT premium moved above its normal range after the Enforcement Directorate raided six premises in Bengaluru on June 17 as part of an investigation under the Foreign Exchange Management Act. The agency alleged that five crypto payment firms enabled more than 2,500 crore rupees ($265 million) in unauthorized cross-border transfers using virtual digital assets.
⚠️ Investigators alleged that non-resident Indians used USDT instead of conventional bank remittance channels. According to the agency, users deposited rupees into company accounts before the funds were converted into stablecoins, transferred overseas and later sold on Indian exchanges, allowing transactions to bypass documentation and authorization requirements under FEMA and the Prevention of Money Laundering Act.