TechFlow news, June 29, according to The Economic Times, a significant shortage of USDT supply has emerged in the Indian market, with local premiums surging from the usual 3-4% to over 8.5%, Saturday quotes reaching ₹102.88, while the USD/INR closing price on the same day was only 94.65.
The direct trigger for the widening premium is the recent crackdown by India's Enforcement Directorate (ED) on relevant entities involved in cross-border fund transfers using USDT—previously, a large number of Indian expatriates bypassed banking channels to remit funds domestically in the form of USDT; this model prevailed for over two years due to its speed, low cost, and higher exchange returns, but now faces interruption. The ED believes that such cross-border crypto transfers violate the Foreign Exchange Management Act (FEMA), even if the source of funds is legal.
Industry insiders point out that the lack of regulatory rules itself has become an extra cost borne by the market. Currently, the Standing Committee on Finance of the Indian Parliament is scheduled to discuss crypto policy trends with the central bank and ICAI on July 2. Meanwhile, FATF data shows that in 2025, stablecoins accounted for 84% of the global $154 billion in illegal virtual asset transactions, and the urgency for India to strengthen VDA regulation continues to rise.
