The premium for USDT in India has surged to 8.5%, nearly double the usual rate, amid investigations by the Enforcement Directorate.
On June 29, the premium for the stablecoin USDT in India surged to 8.5%, nearly double the typical spread.
— Crypto Aman (@cryptoamanclub) June 29, 2026
During the weekend, USDT was priced at 102.88 Indian rupees on local exchanges, compared to the interbank dollar rate of 94.65 rupees. Normally, this price difference is around 3-4%.
The spike in premium has been attributed to recent actions by India’s Enforcement Directorate (ED), which conducted searches at six locations in Bangalore.
The investigation targets five cryptocurrency payment companies suspected of enabling unauthorized cross-border transactions via digital assets.
According to the ED, non-residents in India have been using USDT to bypass traditional banking methods. Reports indicate that rupees were deposited into corporate accounts, converted into stablecoins, and then traded on Indian exchanges, evading local financial regulations.
The ED's statement noted that the total transaction volume involved exceeds 25 billion rupees (approximately $300 million).
This practice has reportedly been in operation for about two years, drawing users with its faster and cheaper transfer options, as well as the enhanced value during conversions due to the premium.
In response to the ED's findings, market makers and liquidity providers have scaled back their USDT purchases internationally, leading to a tighter supply in the domestic market and an expanded spread.
Interestingly, in January, Africa was noted for having the highest spreads for converting stablecoins into fiat currencies.
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