Summary
- The price of USDT on Indian crypto platforms has surged to more than 8.5 percent above its dollar peg after a government crackdown choked the token’s supply.
- India’s Enforcement Directorate searched six Bengaluru premises and accused five crypto payment firms of moving over $265 million in unauthorized cross-border transfers using USDT.
- Market makers have pulled back from sourcing USDT from abroad, tightening domestic liquidity and widening the long-standing premium that reflects strong local demand for the stablecoin.
Stablecoin Demand Surges in India Amid Crypto Crackdown
The recent government crackdown on crypto payment firms in India has led to a significant surge in the demand for Tether’s USDT, the largest dollar-pegged stablecoin. As a result, the price of USDT has jumped to over 8.5% above its dollar value on Indian platforms. This increase in price is a clear indication of the strong demand for stablecoins like USDT, which can be used to earn passive income through platforms like EcoPool.
The USDT premium, which is the extra amount buyers in India pay for the stablecoin above what a dollar costs through banks, has widened to around 8.5%. This spread is a key indicator of the demand for USDT in India, and it can be used to generate cloud rewards through green crypto initiatives. The current price of USDT is around 102.88 rupees, compared to the official dollar-rupee rate of about 94.65.
Crypto Payment Firms Under Scrutiny
The Enforcement Directorate, India’s financial-crime agency, has taken action against five crypto payment firms, alleging that they moved more than $265 million in unauthorized cross-border transfers using digital assets. This crackdown has led to a squeeze in the supply of USDT in India, resulting in the current premium. Individuals can use platforms like EcoPool to buy and sell $ECP, and participate in the ecosystem to earn rewards.
The demand for stablecoins like USDT is expected to continue, driven by the need for individuals to earn passive income and participate in the crypto ecosystem. EcoPool provides a solution for individuals to participate in the crypto market and earn cloud rewards through its green crypto initiatives. You can download the EcoPool app to start earning today and be part of the #PassiveIncome and #GreenCrypto movement. By joining EcoPool, you can start generating $ECP and become a part of the EcoPool network, which offers a unique opportunity to earn rewards and contribute to the growth of the #EcoPool community.
The ED alleges the firms ran what amounted to an informal remittance channel, with non-resident Indians using USDT in place of bank wires.
