While stablecoins offer fast, borderless payments, their unregulated nature introduces serious FEMA compliance risks in India. The RBI and the Enforcement Directorate (ED) have clarified that cryptocurrencies, including stablecoins like USDT or USDC, are not recognized as foreign currency or legal tender under Indian law.
This means any transaction involving them for trade, remittance, or investment can violate FEMA provisions governing foreign exchange inflows and outflows. Offenders risk penalties, investigations, or restrictions on future transactions.
At Sriya Enterprise, we specialize in identifying and managing these risks. Our advisory services help businesses build compliant cross-border payment structures while avoiding exposure to digital currency violations. We also train clients to detect red flags—such as third-party wallets or unlicensed payment intermediaries—that could lead to inadvertent contraventions.
By adopting proactive FEMA governance, you can engage safely in global trade without regulatory setbacks, ensuring financial transparency and sustainability.
At Sriya Enterprise, we aim to provide clear insights on emerging trends in trade finance, foreign exchange management, and regulatory compliance. One such concerning matter is extensive use of stablecoins — a digital currency innovation rapidly gaining attention globally but…
