USDT premiums in India have climbed above 8.5%, a sharp move that points to a local supply squeeze. According to The Economic Times, USDT traded at ₹102.88 on Saturday, while the official USD/INR exchange rate closed at ₹94.65 on June 27. The gap widened after stablecoin inflows slowed in the local market.
The shift followed stronger action from the Enforcement Directorate, which has intensified scrutiny of virtual digital asset transactions tied to ₹250 billion in money transfers. The report said entities involved in crypto-based cross-border transfers had been supplying large amounts of USDT into India for years. Once those channels came under pressure, available supply tightened.
Cross-border channels face pressure
These transfer routes had become a practical option for many non-resident Indians sending funds to relatives in India. USDT often allowed faster settlement than traditional banking rails, and in many cases produced better rupee returns. That channel is now under greater examination. The Enforcement Directorate believes some of those transfers may violate the Foreign Exchange Management Act.
The agency also oversees compliance under the Prevention of Money Laundering Act. As scrutiny increased, market participants reported lower stablecoin inflows. That drop has left dollar-linked liquidity harder to access in the domestic market, and prices moved quickly.
Premium breaks above its usual range
Supply is only part of the story. Regulatory uncertainty appears to be adding extra cost for traders as well. Purushottam Anand, founder of Crypto Legal, said uncertainty often creates additional costs for market participants. He also noted that many virtual digital assets on Indian exchanges have historically traded above global prices, and that tighter checks on cross-border flows may have introduced a fresh risk premium.
That helps explain why traders are paying more to secure stablecoin liquidity. The report noted that the USDT premium moved well above its usual 3% to 4% range. Demand has not faded. If anything, the price jump suggests buyers still need stablecoins even as inflows weaken.
Policy review continues as stablecoins remain central to trading
Regulatory review is still active. According to Sudhakar Lakshmanaraja, founder of Digital South Trust, India’s Parliamentary Standing Committee on Finance is set to meet the Reserve Bank of India and ICAI on July 2 to discuss the future of cryptocurrency regulation. He also said OECD data placed India among countries with significant crypto flows.
At the same time, scrutiny of crypto over-the-counter activity by the Financial Intelligence Unit is continuing. Stablecoins remain a core trading tool in the market because traders use them to buy assets such as Bitcoin and Solana. When supply tightens, that dependence shows up directly in the premium.