Coincheck, a Japanese Bitcoin wallet exchange service launches international over the counter (OTC) crypto-currency trading service. As per reports, this trading desk aims at large scale institutional investors.
The method in which the OTC trading desk operates is that the two parties trade with each other directly. It differs from an exchange. Exchange match orders between sellers and buyers. With the help of OTC trading desk, it will enable institutional investors to trade large volumes of Bitcoin directly. They can do this by the use of a web interface. The volumes of Bitcoin will start from 50 BTC.
The firm will consider trades in other crypto-currencies than bitcoin. Having its headquarters in Tokyo, Japan, Coincheck is a Japanese firm. Koichiro Wada and Yusuke Otsuka are the people who founded it. The Japanese firm stated that the service would allow institutional investors to purchase and sell large amounts of crypto quickly.
The Japanese firm operates an exchange between Bitcoin, fiat and ether transaction. It allows storage in some countries. Coincheck enables OTC support too for crypto-currencies.
Limitations that comes for operations led by Coincheck
Coincheck has a few limitations in the operation of this service desk. Those limitations are mainly weekdays, timing, overtime. The opening hours will face a limitation concerning timing during weekdays. It will start from 10 AM to 3 PM as per Japanese timing. It limits investors from overtime trading. This also limits the usage of the Coincheck app or API trading.
This Japanese firm is not the only one to provide such service to institutional clients. The US has launched such services too. As per previous reports, Coinbase, a United States crypto exchange and wallet provider had launched its own OTC services for its international clients. Launched in November 2018, and became a fully regulated dealer. The U.S. Securities and Exchange Commission (SEC) regulated it.
Coincheck suffered a huge backlash of a whopping amount of $532 million hacks in January 2018. A Japanese broker Monex Group acquired the shareholder composition of Coincheck and its management. The cyber attack forced Coincheck to suspend its services for some times. It hampered the services of the firm. But, it was able to gain the trust of its clients again.
Monex acquisition of Coincheck will change the scenario of digitized-crypto wallets
Monex after acquiring Coincheck took a great step in improving its protection and trading system. It reimbursed the customers who suffered from the devastating hack. Coincheck was able to again resume crypto trading in November 2018. It joined the Network Security Association and restored its reputation. Japan’s Financial Service agency granted an operating license to it in December 2018.
Investors would have the chance to do their business operation with increased momentum now. They can experience a quick selling and buying process. Coincheck also takes care of its clients by giving them attractive prices. The investors can operate their business with an attractive price to increase their client base. With added security to improve the protection and trading system, Coincheck provides safe and secure services.