Binance.US Launches OTC Portal For Trades
Binance.US Launches OTC Portal For Trades
May 12, 2020
Binance.US Launches OTC Portal For Trades
Binance.US Launches OTC Portal For Trades
May 12, 2020

Binance.US has announced that it has launched an over-the-counter (OTC) portal for trades worth $10,000 or more.  

On May 11, it has been reported that OTC trades are arranged directly between the buyer and the seller and do not show up in exchange’s public order books, the cryptocurrency platform clarified in an FAQ.

However, that allegedly allows for the movement of large sums with better privacy and without the potential to affect the market. 

Currently, the OTC platform supports 12 cryptocurrencies as well as US dollars, though USD withdrawal is only available to users who have passed Level 3 Fiat Verification that has the most rigorous Know Your Customer (KYC) requirements on the platform, as all settlements are sent directly to customers’ existing Binance.US accounts.

It has been analyzed that though Binance.US does not charge fees for OTC trades, there will be spreads, which 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.

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Likewise, the global crypto exchange’s US branch, which opened in September 2019, is available for residents of most states, excluding:

  • Alabama
  • Alaska
  • Connecticut
  • Florida
  • Georgia
  • Hawaii
  • Idaho
  • Louisiana
  • New York
  • North Carolina
  • Texas
  • Vermont
  • Washington

Thus, according to an April report from OTC liquidity provider B2C2, OTC trading saw extreme volatility amidst the March crash, as Bitcoin order spreads surpassed 10% during the period of March 12–13 when the asset’s price fell by nearly 50%.

Source: Cointelegraph | Image: Binance US


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Ishita Bora

Ishita Bora is a Senior Content Creator at Digital Notice Media Labs with an experience of 1 year. She has completed her Master's Degree in Language and Linguistics in 2019 from Gauhati University, India. Her interest lies in blockchain technology and cryptocurrency space, as she loves writing about blockchain and other blockchain-related articles. Currently, she is working on blockchain-based news, reviews, featured articles, and guides.