On June 29, the premium for the stablecoin USDT in India reached 8.5%, nearly double the usual spread.
— Crypto Aman (@cryptoamanclub) June 29, 2026
Over the weekend, USDT was trading on local platforms at 102.88 Indian rupees, while the interbank exchange rate to the dollar was 94.65 rupees. Typically, the price difference hovers around 3-4%.
Local publication The Economic Times reported that the emergence of this premium is linked to raids conducted by India’s Enforcement Directorate (ED). Authorities searched six locations in Bangalore.
The investigation involved five crypto payment firms suspected of facilitating unauthorized cross-border transfers using virtual digital assets.
The ED claims that non-residents of India used USDT as a substitute for bank transfers. Preliminary reports suggest that rupees were deposited into company accounts, converted into stablecoins, and then sold on Indian exchanges, circumventing the country's financial regulatory requirements.
The total transaction volume mentioned in the ED's statement exceeds 25 billion rupees (~$300 million).
This model has been operational for about two years. Users were attracted by the speed and lower cost of transfers in USDT, as well as the potential to receive more funds during conversion due to the stable premium.
Following the ED's announcement, market makers and liquidity providers reduced their purchases of USDT abroad, further tightening supply in the domestic market and widening the spread.
It’s worth noting that in January, Africa became the leader in spreads for converting stablecoins into fiat currencies.