Crypto World
USDT jumps to 8.5% premium in India after crypto payment crackdown
Rupees were deposited into company accounts, converted into stablecoins, sent across borders and sold on Indian exchanges, the agency said, sidestepping the paperwork and approvals that formal remittance routes require under FEMA and India’s anti-money-laundering law.
The model had operated for about two years, drawing users because stablecoin transfers were faster and cheaper than bank routes and, thanks to the standing premium, converted into more rupees on the way in.
The premium spiked because the crackdown hit supply directly. After the ED announced its action, market makers and liquidity providers, the firms that source tokens from abroad to sell on local platforms, pulled back on buying USDT overseas, tightening the domestic pool just as the off-ramps feeding it came under pressure. An off-ramp is the route for turning crypto back into local cash.
As such, prominent exchange Coinbase launched direct rupee rails in India last month, easing some reliance on peer-to-peer trades, though the ED’s action targets the off-ramp infrastructure that drives the premium.
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