USDT trades over 8.5% premium in India amid ED crackdown
USDT, the popular stablecoin, is suddenly much more expensive in India, trading at over an 8.5% premium compared with the usual 3% to 4%.
On June 27, it hit ₹102.88 while the USD-INR rate was just ₹94.65.
This jump comes after India's Enforcement Directorate (ED) cracked down on certain crypto transactions, causing a shortage of USDT in the local market.
Enforcement Directorate probes USDT transfers ₹2,500cr
The ED has been investigating cross-border transfers using USDT, citing possible violations of foreign exchange rules.
These channels were a go-to for many Indians abroad because they were cheaper and offered better returns thanks to stablecoin premiums.
Now, with probes into alleged ₹2,500 crore crypto deals and tighter controls, there's less USDT available in India, which means higher prices for those who want it.
Regulatory uncertainty drives higher USDT premiums
With all this uncertainty and stricter oversight, risk is getting priced into the market, pushing premiums even higher.
It's another sign that India needs clearer rules around digital assets as global attention on crypto keeps growing.