Japanese cryptocurrency exchange Coincheck has officially announced the launch of an over-the-counter (OTC) trading service tailored for institutional clients. While the service currently specializes in Bitcoin transactions, Coincheck has indicated plans to expand support to other cryptocurrencies in the future.
Key Features of Coincheck’s OTC Trading Platform
- Minimum Order Size: Clients can trade batches of at least 50 BTC (worth approximately $205,423) at "competitive pricing."
- Trading Hours: Available on weekdays from 10:00 AM to 3:00 PM JST (1:00 AM to 6:00 AM UTC).
- Direct Transactions: OTC trades bypass traditional exchange order matching, allowing parties to negotiate directly.
Background and Regulatory Compliance
Coincheck, which suffered a **$530 million hack** in January 2018 (resulting in the loss of NEM tokens), was acquired by **Monex Group** in April 2019 for $33.5 million. Following the acquisition, the exchange suspended services for several months before fully resuming operations in November 2019.
Currently, Coincheck operates under Japan’s Payment Services Act as a registered entity with the Kanto Financial Bureau. The exchange has also hinted at future expansions, including:
- Leveraged trading
- Convenience store deposit options
- Utility bill payments via cryptocurrencies
Industry Trend: Growing Demand for OTC Crypto Services
Several exchanges have recently introduced OTC trading desks to cater to institutional investors:
- Huobi Global’s U.S. subsidiary launched an OTC division last week.
- Bithumb Global and Bittrex rolled out similar services earlier this year.
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FAQs About Coincheck’s OTC Service
Q: What cryptocurrencies are supported?
A: Initially Bitcoin-only, with potential additions based on demand.
Q: Who can use this service?
A: Primarily institutional clients seeking bulk transactions.
Q: How does OTC differ from standard exchange trading?
A: OTC offers negotiated pricing and larger trade sizes without impacting public order books.
Q: Is Coincheck’s OTC desk regulated?
A: Yes, under Japan’s Payment Services Act.