MarketsTether's USDT has seen its price increase to over 8.5% above its dollar value in India due to a government crackdown on crypto payment companies.

Government actions in Bengaluru have disrupted the flow of dollar-pegged USDT into Indian exchanges, doubling the typical price gap.

By Shaurya Malwa|Edited by Stephen AlpherUpdated Jun 29, 2026, 12:55 p.m. Published Jun 29, 2026, 12:00 p.m. 2 min readMake preferred on ShareShare this articleCopy linkX (Twitter)LinkedInFacebookEmailMake preferred on SummaryShow
  • The price of USDT on Indian exchanges has spiked to over 8.5% above its dollar peg following a government crackdown that limited its availability.
  • The Enforcement Directorate conducted searches at six locations in Bengaluru, accusing five crypto payment firms of facilitating over $265 million in unauthorized cross-border transactions with USDT.
  • Market makers have reduced their sourcing of USDT from international markets, tightening domestic liquidity and increasing the existing premium reflecting strong demand for the stablecoin.

The value of Tether's USDT, the leading dollar-pegged stablecoin, has surged past 8.5% above its dollar equivalence on Indian trading platforms due to a government crackdown that has restricted the influx of the token into the region.

During the weekend, USDT was trading at approximately 102.88 rupees against an official dollar-rupee exchange rate of around 94.65, a significant rise from the typical 3% to 4% difference.

This price difference, referred to as the USDT premium, indicates the additional cost buyers in India incur for the stablecoin compared to the dollar rate available through banks, and it tends to widen when demand outpaces available supply.

According to local reports from ET, the increase in price followed actions by the Enforcement Directorate, India's agency for financial crime, which on June 17 searched six locations in Bengaluru under the Foreign Exchange Management Act. The agency is pursuing five crypto payment firms accused of conducting unauthorized transactions exceeding $265 million using digital assets.

The ED claims these firms established an informal remittance system, where non-resident Indians utilized USDT instead of traditional bank transfers.

Funds in rupees were deposited into the firms' accounts, converted into stablecoins, transferred internationally, and then sold on Indian exchanges, circumventing the necessary documentation and approvals required for formal remittance channels under the Foreign Exchange Management Act and India's anti-money laundering regulations.

This operation had been active for approximately two years, attracting users due to the lower costs and faster processing times of stablecoin transfers compared to traditional banking methods, while also benefiting from a premium that allowed for greater rupee conversions upon arrival.

The premium surged as the crackdown directly impacted supply lines. Following the ED's announcement, market makers and liquidity providers—entities responsible for acquiring tokens from abroad for local sales—reduced their overseas purchases of USDT, tightening the local supply just as the mechanisms supplying the tokens faced scrutiny. An off-ramp refers to the process of converting crypto back into local currency.

In response, major exchange Coinbase introduced direct rupee transactions in India last month, reducing some reliance on peer-to-peer exchanges, although the ED's actions are focused on the off-ramp systems that contribute to the premium.

Latest Crypto News
  1. 1Kalshi and Polymarket could become M&A targets as prediction markets consolidate: Bernstein7 minutes ago
  2. 2Tom Lee blames crypto weakness on quarter-end 'window dressing' as Bitmine adds another $43 million of ETH12 minutes ago
  3. 3JPMorgan sees limited institutional demand for perpetual futures15 minutes ago
  4. 4Saylor's Strategy initiates buybacks and bitcoin monetization program, lifts STRC dividend50 minutes ago
  5. 5Vitalik Buterin says crypto’s most powerful idea isn't nearly ready for use1 hour ago
  6. 6Dollar, U.S. Treasury yield market positions may carry glimmer of hope for bitcoin1 hour ago
  7. 7FundBank becomes IRACE Digital in bid to bridge traditional finance and crypto1 hour ago
  8. 8Bitcoin hovers below $60,000 as crypto braces for a pivotal week2 hours ago
  9. 9Europe’s unlicensed crypto firms face ‘wipeout’ as MiCA deadline hits3 hours ago
  10. 10Bitcoin falls into a technical no man’s land as major support levels sit miles away3 hours ago
Latest Research

The Evolution of the Crypto CEX Landscape: A Case Study on Binance

The Evolution of the Crypto CEX Landscape: A Case Study on Binance

Binance remains crypto’s leading exchange, expanding from spot and derivatives into RWAs, payments, savings, yield, and broader financial services.

By CoinDesk Research2 hours agoCommissioned byBinance

Binance remains crypto’s leading exchange, expanding from spot and derivatives into RWAs, payments, savings, yield, and broader financial services.

Why it matters:

Binance remains crypto’s leading exchange, expanding from spot and derivatives into RWAs, payments, savings, yield, and broader financial services.

View Full ReportMore From Markets

Saylor's Strategy initiates buybacks and bitcoin monetization program, lifts STRC dividend

Bitcoin hovers below $60,000 as crypto braces for a pivotal week

Bitcoin falls into a technical no man’s land as major support levels sit miles away