Key Highlights
USDT traded at around 102.88 rupees on Indian platforms versus an official dollar-rupee rate of about 94.65, a premium that normally sits between 3% and 4%.
India's Enforcement Directorate raided six premises in Bengaluru and accused five crypto payment firms of moving over $265 million in unauthorized cross-border transfers using USDT as a remittance channel.
India's Parliamentary Standing Committee on Finance is scheduled to meet with the Reserve Bank of India on July 2 to discuss the country's regulatory approach to virtual digital assets.
The price of USDT on Indian crypto platforms surged above an 8.5% premium over the weekend after India's Enforcement Directorate (ED) raided six premises in Bengaluru and accused five crypto payment firms of facilitating over $265 million in unauthorized cross-border transfers using stablecoins.
USDT traded at around 102.88 rupees on Indian platforms against an official dollar-rupee rate of roughly 94.65, a spread that typically sits between 3% and 4%. The spike reflects a domestic supply squeeze as market makers and liquidity providers pulled back on purchasing USDT overseas in the wake of the enforcement action, tightening the pool available to Indian buyers.
The ED's investigation found that rupees were deposited into company accounts, converted into stablecoins, sent across borders, and sold on Indian exchanges, bypassing the documentation and approvals required for formal remittance routes. The stablecoin channel had operated for roughly two years, drawing users who found transfers faster and cheaper than traditional banking options.
The crackdown adds pressure on India's crypto market at a sensitive policy moment. The Parliamentary Standing Committee on Finance is scheduled to meet with the Reserve Bank of India on July 2 to discuss India's regulatory approach to virtual digital assets, with the USDT supply crunch putting stablecoin flows at the center of the agenda.
