🐘 Developments in the Indian crypto market🇮🇳: USDT began trading at a record premium against the dollar

🐘 Developments in the Indian crypto market🇮🇳: USDT began trading at a record premium against the dollar

Users are paying, on average, 8.5% above the expected 1 USDT = 1 USD parity to acquire the stablecoin. The main factor behind this increase was the series of raids carried out by India’s Enforcement Directorate against companies involved in crypto transfer operations.

🔣 Companies under investigation: five payment companies came under investigation. According to authorities, over a period of approximately 2 years, they allegedly processed unauthorized cross-border cryptocurrency transactionsexceeding 265 million USD.

🔣 Alleged scheme: according to regulators, rupees were deposited into company accounts, converted into stablecoins, transferred abroad, and later sold on Indian exchanges. This mechanism allegedly allowed operators to bypass documentation and authorization requirements applicable to official international remittance channels.

🔣 Market reaction: the raids took place on June 17, and by the weekend, USDT was already trading on local platforms at around 102.88 rupees, while the interbank dollar-to-rupee exchange rate stood at 94.65 rupees. Under normal conditions, the difference between these values usually remains within the 3-4% range.

🔣 Consequences: following the raids, market makers and liquidity providers reduced USDT purchases due to regulatory concerns. This further tightened supply in the domestic market.

🔣 Context: 84% of the volume of illegal virtual asset transactions in 2025 involved stablecoins, amounting to approximately 154 billion USD. The main reasons cited for their use include liquidity and cross-platform compatibility.

🔣 Regulatory developments: India continues to gradually tighten requirements for cryptocurrency platforms. Since January, users of regulated exchanges have been required to verify their identity through a real-time selfie. The images are analyzed using biometric verification software that evaluates facial movements, including eye and head movements. In addition, platforms are required to collect customers’ geolocation data, IP addresses, and record the date and time of account creation.

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