India USDT premium tops 8.5% after raids

• Tether (CRYPTO:USDT) traded at an 8.5% premium in India after enforcement action disrupted domestic stablecoin supply.
• Authorities alleged crypto payment firms facilitated more than ₹2,500 crore (US$265 million) in unauthorised cross-border transfers using USDT.
• India continues tightening oversight of digital assets through enforcement, anti-money laundering measures and tax compliance checks.

Tether (CRYPTO:USDT) traded at ₹102.88 on Indian crypto platforms, compared with the interbank USD/INR rate of ₹94.65, pushing the domestic premium above 8.5% after enforcement action reduced local stablecoin supply.

The premium widened after India's Enforcement Directorate raided six premises in Bengaluru on 17 June, alleging that five crypto payment firms facilitated more than ₹2,500 crore (US$265 million) in unauthorised cross-border transfers using USDT over about two years.

According to the Enforcement Directorate, users deposited rupees into company accounts before the funds were converted into USDT, transferred overseas and later sold on Indian exchanges, allowing transactions to bypass documentation and approval requirements under foreign exchange and anti-money laundering laws.

The Economic Times reported that market makers and liquidity providers reduced overseas USDT purchases following the raids, further tightening domestic supply and contributing to the higher premium.

India's Parliamentary Standing Committee on Finance is scheduled to meet the Reserve Bank of India and the Institute of Chartered Accountants of India on 2 July to discuss virtual digital asset regulation, and there was no immediate market reaction following the enforcement action.

The Financial Action Task Force said stablecoins accounted for 84% of the US$154 billion in illicit virtual asset transaction volume recorded during 2025, while India's Financial Intelligence Unit has expanded record-keeping requirements for large over-the-counter crypto transactions.

Despite tighter regulation, India remains one of the world's largest crypto markets, ranking first globally for crypto adoption in 2025, while TRM Labs estimated crypto transaction volume across South Asia increased 80% year on year to about US$300 billion between January and July 2025.