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Tether’s USDT has begun trading at a significant premium in India after authorities intensified action against illegal crypto payment networks, tightening access to dollar-backed digital assets through informal channels.
According to market data, USDT was trading at an 8.5% premium over its global value on peer-to-peer platforms, reflecting a sudden imbalance between demand and supply. The spike follows enforcement measures targeting unregulated operators that allegedly used cryptocurrencies to facilitate cross-border payments and money transfers.
The market players claim that the regulation has interfered with the availability of the USDT on the OTC and peer-to-peer markets in India, which widely use the stablecoin for cross-border payments, settlement, and crypto trading.
Amid the regulation of multiple payment platforms, users who use the stablecoin for cross-border business have begun experiencing difficulties accessing the token. Due to a shortage of USDT supply, its price has risen above parity with the US dollar.
It should be noted that the premium stems from conditions in the local market, not from problems with Tether’s reserves or the stablecoin itself.
The scarcity is forecast to hurt importers, exporters, freelancers, and crypto traders who use USDT to make payments swiftly and without the delays typical of banking systems.
In the analysts’ view, high premiums have not deterred demand for stablecoin transactions, suggesting that stablecoins remain an efficient way to send money abroad.
At the same time, the event has demonstrated the dependence of some parts of the Indian crypto community on unregulated liquidity sources.
Market specialists in the crypto world believe that the premium will decrease once liquidity is provided by compliant exchanges or by another regulatory payment method. However, until sufficient liquidity appears, USDT will remain at a premium to its global benchmark price in India.
The event proves how fast regulators can change the crypto environment in the region with just one move.
