USDT Premium Hits 8.5% in India After Bengaluru Crypto Raids
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- USDT traded around 102.88 rupees against an official rate of about 94.65, pushing the stablecoin's India premium above 8.5% — roughly double its usual 3–4% gap over the dollar.
- India's Enforcement Directorate searched six Bengaluru premises on June 17 under the Foreign Exchange Management Act, targeting five crypto payment firms accused of moving more than $265 million in unauthorized cross-border transfers using USDT.
- The ED alleges the firms operated a two-year informal remittance channel for non-resident Indians, converting rupee deposits into stablecoins, sending them abroad, and selling them on Indian exchanges to bypass FEMA paperwork and anti-money-laundering approvals.
- Market makers pulled back from sourcing USDT overseas after the ED's action, tightening domestic liquidity and widening the premium — supply-side pressure, not a sudden demand spike, drove the gap.
- Coinbase launched direct rupee rails in India last month, easing some reliance on peer-to-peer trades, but the ED's raids target the off-ramp infrastructure that sustains the premium itself.
Why it matters: Indian users now pay an 8.5% premium — about 8 extra rupees per dollar — to access the world's largest stablecoin because enforcement against five alleged $265M+ shadow remittance firms choked USDT supply. The crackdown validates demand for stablecoin transfers that beat bank rails on speed and cost, but also signals regulators will pursue the off-ramp plumbing, not just the on-chain activity.
