USDT Premium in India Surges to 8.5% Amid ED Crackdown on Cross-Border Transfers

According to the Economic Times, USDT premium in India surged to 8.5% within the past week due to supply shortage. Local USDT traded at approximately 102.88 rupees on Saturday, compared to the interbank USD/INR rate of 94.65, up from the typical 3%-4% premium.

India's Enforcement Directorate (ED) has been cracking down on entities facilitating cross-border USDT transfers for diaspora remittances and those bypassing bank channels. Many overseas Indians had been using USDT instead of wire transfers to send money home due to faster speed, lower costs, and the ability to convert at local premiums. The ED considers such cross-border crypto transfers as potential violations of India's Foreign Exchange Management Act, regardless of the legality of underlying funds.