India's USDT premium tops 8.5% amid supply shortage

The premium on Tether (USDT) in India has surpassed 8.5% amid a deepening supply shortage, The Economic Times reported. This premium, which typically hovers between 3% and 4%, surged after India's Enforcement Directorate (ED) cracked down on overseas remittance companies using the stablecoin. On Saturday, the local price of USDT in India reached 102.88 rupees, significantly above the official dollar-rupee exchange rate of 94.65. USDT has been a popular remittance method for Indians living abroad, offering a faster and cheaper alternative to traditional banking. However, the ED has intensified its crackdown, arguing that cross-border transfers via cryptocurrency violate the Foreign Exchange Management Act (FEMA), which has caused a sharp decline in USDT inflows into the country.