China's over-the-counter (OTC) market is experiencing a 1.5% negative premium on USDT, with the stablecoin trading at a discount against the RMB. As of early December, USDT was quoted at 6.92–6.95 RMB, compared to the USD/CNY rate of 7.07. This unusual discount reflects panic selling driven by increased regulatory pressure and fears of capital flight. Many OTC traders are reportedly halting operations and selling off USDT to mitigate regulatory risks.