In India, USDT is sold at a 5-12% premium, pressuring local crypto traders and investors. Crypto.news spoke with executives from CoinSwitch and WazirX, and retail traders, to understand the impact.
USDT’s premium is driven by strict Indian regulations, difficulty in depositing rupees into exchanges, and rupee volatility against the US dollar. CoinSwitch’s Balaji Sirhari notes that high transaction costs and taxes deter intraday trading, pushing users towards long-term investments.
WazirX’s Nischal Shetty highlights that high demand for USDT and regulatory challenges drive up prices. Additionally, India’s 1% TDS and 30% capital gains tax make short-term trading less appealing.
Despite these challenges, Indian crypto trading volumes are rising, and a vibrant online community thrives. This situation underscores the strategic importance of adapting to regulatory environments for sustainable growth in the crypto market.
