USDT traded at more than an 8.5% premium over its dollar value on Indian cryptocurrency platforms after the Enforcement Directorate announced a crackdown on crypto payment firms on June 17. The premium, which typically ranges between 3% and 4%, reflects the extra amount Indian buyers pay for the stablecoin because local demand exceeds supply. USDT had been trading around 102.88 rupees against an official dollar‑rupee rate of about 94.65. The Enforcement Directorate searched six premises in Bengaluru on June 17 under the Foreign Exchange Management Act. It said five crypto payment firms allegedly moved more than $265 million in cross‑border transfers using USDT. The agency described the activity as an informal remittance channel that allowed non‑resident Indians to deposit rupees, convert them to USDT, send the tokens abroad and sell them on Indian exchanges. The channel had been operating for about two years and attracted users because transfers were faster and cheaper than bank routes. The existing premium increased the rupee conversion on receipt. Following the announcement, market makers and liquidity providers reduced purchases of USDT from overseas sources. This tightened domestic supply and widened the premium. Coinbase launched direct rupee rails in India last month to provide a regulated off‑ramp. The crackdown targeted the infrastructure that underpins the price gap. The premium’s persistence will depend on whether liquidity providers resume overseas sourcing and how the regulatory environment evolves in India.