USDT Premium in India Hits 8.5% Amid Crypto Regulatory Crackdown

India's Enforcement Directorate has been cracking down on firms that facilitate transactions of money inflow and outflow from India using USDT and other altcoins. The crackdown led to a supply crunch, causing the premium for USDT in India to surge to over 8.5%.

This is nearly twice the usual range of 3-4%, according to reports by The Economic Times India. On June 27, USDT was priced at ₹102.8 in India, or around $1.09 based on the interbank rate, while the U.S. dollar was at ₹94.6.

The premium for USDT in India has been rising due to the tightness of supply and the fear of regulatory scrutiny. Market-makers are now being extremely careful when bringing in USDT into India after the local regulator issued warnings regarding ₹2,500 crore ($264 million) of money transactions via crypto.