India's USDT premium has climbed above 8.5%, more than double its typical range, after Enforcement Directorate raids on crypto remittance firms disrupted the stablecoin supply pipeline.
Tether's (USDT) stablecoin was trading at 102.88 Indian rupees on local platforms over the weekend, against a USD-INR interbank closing rate of 94.65 rupees, a spread that normally holds between 3% and 4%, local outlet The Economic Times reported.
The premium began widening after the ED conducted searches at six premises in Bengaluru on June 17 under the Foreign Exchange Management Act, targeting five crypto payment firms it alleges facilitated more than 2,500 crore rupees ($265 million) in unauthorized cross-border transfers using virtual digital assets.
Notably, the ED alleges that non-resident Indians used USDT as a substitute for bank wires.
Authorities claimed rupees were deposited into company accounts, converted to stablecoins, transferred across borders, and sold on Indian exchanges to bypass the documentation and authorization requirements that govern formal remittance channels under FEMA and the Prevention of Money Laundering Act.
