USDT Premium in India Jumps Above 8.5% as ED Crackdown Tightens Stablecoin Supply

Highlights:

• USDT traded above an 8.5% premium in India after local stablecoin supply tightened sharply.
• ED action against alleged unauthorized crypto transfers made liquidity providers reduce USDT inflows into India.
• Some NRIs used USDT for faster rupee transfers, but India’s crackdown pressured that route.

The price of USDT has risen sharply in India after a supply crunch hit the local crypto market. According to a June 29 report by The Economic Times, USDT is now trading at a premium of more than 8.5% in India. The premium usually stays near 3% to 4%.

USDT, issued by Tether, is designed to track the value of one U.S. dollar. In India, however, USDT often trades at a higher price because local supply depends on demand, liquidity, and cross-border inflows. The report said USDT was quoted at ₹102.88 on Saturday. By comparison, the USD-INR rate had closed at 94.65 on Friday. The gap shows that Indian traders are paying far more than the normal dollar rate to buy dollar-linked stablecoins.

India’s USDT Supply Tightens as Stablecoin Premium Rises Above 8.5%

According to The Economic Times, USDT supply in India has suddenly tightened, pushing the local stablecoin premium from the usual 3%–4% to over 8.5%. On Saturday, USDT was quoted at INR 102.88, compared with the… pic.twitter.com/zXoYIWuyVl

— Wu Blockchain (@WuBlockchain) June 29, 2026

ED Crackdown Pushes USDT Premium Higher

The price jump came after the Enforcement Directorate (ED) increased action against firms allegedly involved in cross-border transfers through crypto assets. In a June 19 press release, the ED said it searched Bengaluru-based firms over suspected FEMA violations linked to more than ₹2,500 crore in unauthorized transfers.

ED, Bengaluru Zonal Office has conducted searches under section 37 of FEMA, 1999 on 17.06.2026 at 6 premises of M/s Transak Technology India Private Limited, M/s Carretx Technologies Private Limited, M/s Mokshagna Technologies Private Limited, M/s. Buyhatke Internet Pvt. Ltd.… pic.twitter.com/pe9xl560qK

— ED (@dir_ed) June 19, 2026

The agency said some firms used virtual digital assets, including stablecoins such as USDT, to move money across borders without approval from the Reserve Bank of India. It also said some platforms offered on-ramp and off-ramp services. After the ED action, many liquidity providers became more cautious. That reduced the flow of USDT into the local market. Demand stayed strong, but supply became tighter. As a result, the local premium moved higher.

USDT Route to India Comes Under Pressure

The Economic Times report said some non-resident Indians (NRIs) had been using USDT to send money to India. Instead of sending dollars through banks, they could move USDT and sell it locally for rupees. This route was faster for some users and often gave recipients better rupee value because USDT already traded at a premium.

The crackdown has now put pressure on that route. With lower inflows, traders expect a tighter supply. They are also pricing in more risk because India’s rules around cross-border crypto transfers remain unclear. Crypto lawyer Purushottam Anand told The Economic Times that Indian exchanges have long seen premiums on virtual digital assets. He said the latest rise may also reflect a risk premium linked to regulatory uncertainty.

India is still working through its broader crypto policy, and stablecoins are now getting more attention. The Economic Times report said the Parliamentary Standing Committee on Finance is expected to meet the RBI and ICAI on July 2 to discuss the next steps. For crypto users in India, the higher USDT premium means buying dollar-linked stablecoins has become more costly. For regulators, the issue has added more pressure to bring clearer rules around stablecoins, remittances, and cross-border crypto transfers.