Home Finance News Over-the-Counter Cryptocurrency Desks Trade Billions Over Skype

Over-the-Counter Cryptocurrency Desks Trade Billions Over Skype


Most of the cryptocurrency enthusiasts have set up their own private network for Over-the-Counter buying, selling and trading billions every single month. Instead of using Symphony or Bloomberg or any other high caliber traders, most of them chose Skype.

A small group of traders for about twenty in numbers which include miners, huge investors, hedge funds, payment processors has reached their monthly volume trading of billions of dollars. And instead of using an exchange platform like Kraken and Coinbase, most of these participants close their deals using Skype and settle most of their transactions by sending fiat through cryptocurrency right through each other’s wallet.

According to the report, after the huge increase in most of these cryptocurrency desks, some of these desks now handle more than $100 million each day. Michael Moro, the Chief Executive of the Genesis Global Trading said that by December this year, it will reach a monthly record between $1.5 billion and $2 billion. The company Circle also traded OTC worth of $4 billion a month for the last year according to the company’s spokeswoman, Jennifer Hanley. To avoid any potential issues, users are advised to register with the US regulators and to follow all the compliance and standards as well as trade only the bitcoin.

Trading outside the cryptocurrency venues can be seen as one of the risk managements. According to report, some of the incident that can harm an exchange is the case of exchange of hacking. “The moment big hacks happen, there we see that the business go up.” clarified by one of the OTC traders. To be sure, clients need to give their trust to the brokers to avoid any risk and a sort of illegal funding.

This could also be a way for most of the traders to avoid spooking the market or creating big waves through creating their own trades as private. “When you have huger block trades, you can go trade with the help of an OTC desk without the risk of moving too much of the market or experiencing too much slippage” explained by the founder of the crypto hedge fund, Kevin Zhou.

Today, most of the trading firms are selling, buying and negotiating their digital currencies like bitcoin and Ethereum over Skype. Most of these are crypto enthusiasts who moved millions of dollars daily and mostly through online messaging. Over-the-Counter Traders are not independently audited and reported. However, some said that most of their desks are handling more than $100 million of trades each day and has a minimum ticket size of between $80,000 and $250, 000.

Most of these Over-the-Counter transactions are being settled through sending cryptocurrency into a digital wallet and through a bank wire transfer. While most of the business is growing, OTC desks are dealing with the absence of clearer standards from the regulators. Just recently, the Commodity Futures Trading Commission calls the bitcoin as a commodity.

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dan saada

Dan hold a master of finance from the ISEG (France) , Dan is also a Fan of cryptocurrencies and mining. Send a tip to: 0x4C6D67705aF449f0C0102D4C7C693ad4A64926e9

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