Overview
- The Enforcement Directorate searched six Bengaluru premises on June 17 as part of a FEMA probe that accused five crypto payment firms of moving roughly ₹2,500 crore in unauthorized cross‑border transfers using USDT.
- Local market prices for Tether’s USDT jumped to about ₹102.88 while the interbank USD‑INR rate was near ₹94.65, pushing the USDT premium above 8.5 percent and widening the usual 3–4 percent gap.
- Market makers and liquidity providers pulled back from sourcing USDT overseas after the raids, and the ED restrained about ₹6 crore in bank balances linked to the case, tightening on‑ramps and off‑ramps for stablecoins.
- The higher premium raises entry costs for traders, reduces profitable arbitrage, and increases legal risk for firms that try to import USDT into India to close the price gap.
- The action comes against a backdrop of steep crypto taxes, FATF warnings about stablecoin misuse, and an imminent Parliamentary Standing Committee session with the RBI and ICAI on July 2 to review virtual digital asset rules.