Binance’s United States arm has launched an over-the-counter portal for trades worth $10,000 or more, according to an official announcement on Monday.
OTC desk and Binance.US’s requirements
OTC trades are negotiated 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. That allegedly allows for the movement of large sums with better privacy and without the potential to affect the market.
The OTC platform currently supports 12 cryptocurrencies as well as U.S. dollars, although USD withdrawal is only available to users who have passed Level 3 Fiat Verification, which has the most stringent Know Your Customer requirements on the platform. All settlements are sent directly to customers’ existing Binance.US accounts.
Although Binance.US does not charge fees for OTC trades, there will be spreads. That means 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 global crypto exchange’s U.S. branch, which opened in September 2019, is available for residents of most states, excluding the following: Alabama, Alaska, Connecticut, Florida, Georgia, Hawaii, Idaho, Louisiana, New York, North Carolina, Texas, Vermont and Washington.
OTC trading saw major volatility during the March plunge
According to an April report from OTC liquidity provider B2C2, OTC trading saw extreme volatility amid the March crash, as Bitcoin (BTC) order spreads exceeded 10% during the period of March 12–13 when the asset’s price fell by nearly 50%.
CryptoNewspeople reached out to Binance.US for additional details but received no response as of press time. This article will be updated, should a response come in.