Binance’s US office has set up an over-the-counter portal for operations valued at $ 10,000 or moreAccording to an official announcement on Monday.
Requirements for OTC Desk and Binance.US
OTC transactions are traded directly between buyer and seller and do not appear in the public order books of the exchange, the cryptocurrency platform is explained in an FAQ. This is said to allow large amounts to be moved with greater privacy and without being able to influence the market..
The OTC platform currently supports 12 cryptocurrencies in addition to US dollars. However, withdrawing dollars is only possible for users who have passed Level 3 of the Fiat review.who has the strictest “Know your customer” requirements on the platform. All bills are sent directly to existing Binance.US customer accounts.
Although Binance.US does not charge OTC trades, there will be spreads. This means that the price offered by the exchange is lower or higher than the market pricedepending on whether the customer sells or buys.
The U.S. branch of the cryptocurrency 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.
OTC trading experienced great volatility during the March crash
According to a report by OTC liquidity provider B2C2 in April OTC trading experienced extreme volatility during the March decline as spreads on Bitcoin (BTC) orders topped 10% over the period March 12-13when the price of the asset fell almost 50%.
Cointelegraph contacted Binance.US for further details, but received no response until the time of publication. This article will be updated if a response is received.
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