India’s USDT premium surges past 8.5% amid shortage
6.7 Stablecoins India's USDT premium has surged past 8.5% amid regulatory crackdowns, causing a severe supply shortage. Traders now pay well above global prices as enforcement disrupts stablecoin inflows and remittance channels.
India's stablecoin market is facing a significant supply shortage, with the USDT premium soaring above 8.5% on local exchanges. This surge is primarily due to recent regulatory crackdowns, including Enforcement Directorate actions against entities facilitating unauthorized cross-border crypto transfers and crypto forex services. These enforcement measures have disrupted key remittance channels, sharply reducing the inflow of stablecoins like USDT. As a result, Indian traders are paying much higher prices than the global average, with USDT trading at INR 102.88 compared to the USD-INR rate of INR 94.65. The premium, typically between 3% and 6%, now underscores the widening gap between local demand and available liquidity. This situation is reshaping trading behaviors and highlights the significant impact of regulatory actions on crypto pricing and liquidity in India. The Parliamentary Standing Committee on Finance is set to address these regulatory gaps, reflecting growing concerns over stablecoin regulation and market stability.
