Tether trades 8.5% above India’s dollar rate as policy pressure hits USDT access
India’s USDT premium rose above 8.5% on June 29, with USDT around INR 102.88 versus USD/INR near INR 94.65, far above the usual 3% to 4% range. The gap shows a local shortage of rupee-based access to dollar-linked crypto liquidity, even while USDT traded near $1 globally. The spike came after Enforcement Directorate searches linked to alleged unauthorized USDT-based outward remittances and suspected FEMA violations, creating compliance caution around banking, market-making, P2P supply, and remittance rails. The premium reflects a split between USDT as a global stablecoin and USDT as a token Indian users must buy with rupees. Demand persists, but access has become costlier and riskier. India’s broader crypto regime remains fragmented: AML registration exists for some VDA providers, but remittance authorization is separate, and crypto assets are still largely unregulated. A July 2 parliamentary discussion with RBI officials adds to the policy focus.
