Tether USDT trades 8.5% above rupee dollar rate

Tether’s USDT was quoted near INR 102.88 on June 29, roughly 8.5% higher than the official USD/INR close of INR 94.65. The premium on the rupee price of the dollar-linked token emerged as enforcement activity focused on alleged USDT-based remittance flows.

On June 19 the Enforcement Directorate carried out searches tied to several crypto and fintech platforms and reported uncovering alleged outward remittance activity using USDT without Reserve Bank of India authorization. The agency named Transak, Carret, Xpat/Remit2any, Onramp.money and Onmeta in connection with the searches. The ED alleged suspected contraventions under the FEMA framework exceeding INR 2,500 crore and said about INR 6 crore had been restrained; those allegations have not been adjudicated.

Global trading data on June 29 showed USDT trading close to its $1 peg on major exchanges, indicating the token itself remained near its global market value while the local rupee route to obtain USDT carried a higher price.

Traders and payment firms reported that limited access to rupee on-ramps and reduced intermediary willingness to handle crypto-linked flows contributed to the local premium. Other reported frictions included reduced banking access for crypto-related transfers, market makers widening spreads, declines in peer-to-peer supply, higher tax liabilities and uncertainty about remittance authorization and compliance requirements.

The ED described alleged processes in which customers deposited rupees into domestic bank accounts, equivalent crypto was transferred to overseas wallets and foreign beneficiaries received equivalent fiat or crypto. Anti-money-laundering registration, reporting to the Financial Intelligence Unit and RBI remittance authorization are distinct regulatory requirements for remittance and virtual digital asset activity.

A March Lok Sabha reply noted 54 virtual digital asset service providers were registered with FIU-IND as of March 9, 2026, and that 53 apps or URLs had been directed for takedown. A separate Rajya Sabha response described virtual digital assets as currently unregulated while noting tighter reporting and tax obligations that took effect on April 1. The Parliamentary Standing Committee on Finance scheduled a meeting with RBI officials on July 2 to discuss policy options for virtual digital assets, with the Institute of Chartered Accountants of India expected to take part in discussions on taxation and compliance.

In a recent speech hosted by the Bank for International Settlements, an RBI deputy governor listed risks the central bank associates with crypto assets and stablecoins, including potential dollarization, currency substitution, weakened capital-flow controls and unmonitored cross-border flows.

Market participants reported that the higher rupee price for USDT raised costs for traders moving funds between venues, users seeking stablecoin liquidity and remittance-linked demand that had relied on faster or less formal rails. Some participants also reported increased use of peer-to-peer and offshore routes as on-ramps tightened.