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India's $1.2B Stablecoin Boom Exposes Regulation Gap

Source: the-ken.com

India lacks regulation for stablecoins, digital tokens pegged to stable assets like the US dollar, leaving users exposed to risks.
Indians hold $1.2 billion in USDT, the top stablecoin, mainly via offshore exchanges despite RBI warnings.
This regulatory gap boosts crypto adoption but heightens money laundering and financial instability risks.

India's central bank and regulators have cracked down on crypto but overlooked stablecoins, which are booming in use among Indians. The article reveals how $1.2 billion in USDT sits in Indian wallets, driving remittances and trading despite official bans. It argues this blind spot undermines India's crypto controls and exposes users to unmonitored risks. Readers in finance or policy should care because it highlights a massive loophole in a $400 billion global stablecoin market.