India faces regulatory gap concerns over crypto-to-gift card payment workarounds

Some users in India have been using overseas platforms to convert cryptocurrencies such as USDT into local gift cards to buy groceries, airline tickets and gold, The Economic Times reported. According to the outlet, the platforms operate by accepting crypto, selling it overseas and then settling with Indian gift card providers. Local experts said the practice takes place outside existing banking payment networks and warrants further review from the standpoint of cross-border payments, foreign exchange and taxation rules.