Binance’s U.S. branch has launched an over-the-counter portal for transactions worth $10,000 or more, according to an official announcement on Monday.
OTC desk and Binance.US requirements
OTC trades are negotiated directly between the buyer and seller and do not appear on the exchange’s public order books, the The News Spy – Bitcoin Profit – Bitcoin Billionaire – Bitcoin Era – Bitcoin Revolution – Bitcoin Code – Immediate Edge – Bitcoin Trader – Bitcoin Circuit – Bitcoin Evolution platform explained in a FAQ. That supposedly allows the movement of large sums with greater privacy and without the possibility of affecting the market.
OTC margins exceeded 10% during the violent drop in the Bitcoin price in March
The OTC platform currently supports 12 crypto currencies in addition to US dollars, although dollar withdrawal is only available to users who have passed Fiat’s Level 3 Verification, which has the strictest „Know Your Customer“ requirements on the platform. All settlements are sent directly to existing Binance.US customer accounts.
Although Binance.US does not charge fees for OTC transactions, there will be spreads. This means that the price offered by the exchange will be lower or higher than the market price, depending on whether the customer is selling or buying.
The U.S. branch of the crypto-currency exchange, which opened in September 2019, is available to residents of most states except the following: Alabama, Alaska, Connecticut, Florida, Georgia, Hawaii, Idaho, Louisiana, New York, North Carolina, Texas, Vermont and Washington.
Tokenomica now offers OTC trade
OTC Trading Experienced High Volatility During March’s Collapse
According to an April report from the OTC liquidity provider, B2C2, OTC trading experienced extreme volatility amidst the March decline, as Bitcoin (BTC) order spreads exceeded 10% during the March 12-13 period, when the asset price fell by nearly 50%.
Cointelegraph contacted Binance.US for more details, but did not receive a response until the time of the release. This article will be updated, in case a response arrives.