Japanese Cryptocurrency Exchange Coincheck Launches Bitcoin OTC Trading Desk
Japanese cryptocurrency exchange Coincheck has launched an OTC (over-the-counter) desk as a gateway to the cryptosphere. The new trading desk gives major institutional investors a way to invest large amounts of money in Bitcoin (BTC).
According to Coincheck,
“We are pleased to announce that Coincheck (WEB) has launched a large-scale OTC trading service for large-scale customers.”
“Large-scale OTC trading service is a service that allows you to buy and sell virtual currencies at attractive prices for large-scale customers.”
— Coincheck(コインチェック) (@coincheckjp) April 1, 2019
For now, transactions on the OTC desk are limited to Bitcoin. Coincheck suggests service offerings could be expanded in the future. Trading volume limits have also been set, with a minimum of 50 BTC worth $206,262.50 at time of writing.
“We will consider the handling of other virtual currency from time to time. Overtime trading and trading from other than the large OTC trading screen are not eligible.”
Coincheck says large-scale OTC trading will be on weekdays from 10:00 to 15:00.
Because Japan recognizes Bitcoin as a currency, it is a major market maker in the cryptocurrency space.
In January 2018, Coincheck confirmed a hacker broke through its security system and stole NEM worth $532 million, making it one of the largest hacks in the industry’s history.
Coincheck implemented procedures that may have made the hack possible: it stored the NEM in a single hot wallet that was connected to the internet. The low-security wallet did not utilize NEM’s more secure multisig wallet, recommended by the developers.
Following the Coincheck hack, Japan’s Financial Services Agency introduced legislation that requires customers to manage their own crypto assets using a “cold wallet” that is disconnected from the internet.