Over-the-counter cryptocurrency trading Becoming Popular due to lack of trust in crypto exchanges
2022.12.27 07:51
Over-the-counter cryptocurrency trading Becoming Popular due to lack of trust in crypto exchanges
Budrigannews.com – Over-the-counter (OTC) trading was the preferred method for many crypto investors to buy or sell cryptocurrency prior to the development of centralized exchanges (CEXs). Due to investors’ decreased faith in CEXs and their desire for alternative means of converting from and to fiat, the FTX collapse may increase demand for crypto OTC services.
To learn more about the state of OTC markets at the moment, Cointelegraph spoke with BestChange, a Russian aggregator of OTC crypto exchanges.
BestChange chief analyst Nikita Zuborev stated, “The role of OTC is sometimes underestimated amid the all-encompassing marketing of centralized exchanges.” The executive asserts that for the majority of users, over-the-counter (OTC) transactions frequently serve as an entry point into cryptocurrency.
According to Zuborev, who spoke with Cointelegraph, BestChange users frequently use the services of OTC exchangers, which are portals that serve as fiat onramps to crypto. These exchangers allow users to either sell their crypto or replenish their balance on a crypto exchange.
Zuborev stated, “If there are quite convenient ways of direct replenishment from a bank card for the countries of Central Europe and the countries of North America, then there are no such options for the countries of Eastern Europe and Central Asia, and exchangers remain the only convenient way to work with cryptocurrency.”
The executive also mentioned that the most recent happenings in the industry might help the crypto OTC market, saying:
“Thanks to the fiasco of the FTX executives, our segment could see a significant influx of users even outside of our traditional market. We expect that 2023 could be the year of decentralization and accelerated development of decentralized apps.”
BestChange, which was established in 2007, enables crypto-to-fiat transactions via PayPal, Payoneer, Skrill, and other services in addition to Visa and Mastercard cards. Presently working under the ward of the Russian Organization, BestChange plans to bit by bit move its base camp to Dubai.
BestChange has planned to expand beyond Russia for some time, so the executive emphasized that the relocation has nothing to do with the ongoing geopolitical or other issues in the country.
Zuborev also stated that BestChange does not anticipate any sanctions from the international community. Second, our business format does not involve the handling of money, and the UAE maintains its neutrality in geopolitical matters. He noted that BestChange-listed OTC crypto exchangers should adhere to local regulations because they are situated in central Europe or the Baltic states.
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The post-Soviet nations that BestChange serves are Ukraine, Kazakhstan, Georgia, and Belarus, among others. SimilarWeb data indicate that users from Russia and Ukraine visit BestChange the most frequently, accounting for 48% and 15% of all traffic, respectively.
He stated, “The majority of centralized exchanges are under pressure from regulators in Europe and North America, and our segment is mostly represented by small local services that obey the laws of the country of location so they can serve Russians, Ukrainians, Europeans, Africans, residents of Asia, and Oceania independently.”
Zuborev asserts that BestChange’s over-the-counter market services have not been adversely affected by international sanctions imposed on Russia but rather have increased adoption.
