The FTX crash could fuel greater demand for OTC crypto services as investors seek alternatives to crypto exchanges despite low CEX confidence.
Before the rise of the central exchange (CEX), over-the-counter (OTC) trading was the method of choice for buying or selling cryptocurrencies for many crypto investors. The collapse of FTX could fuel more demand for OTC crypto services as investors look for alternatives to fiat due to low confidence in CEX.
Cointelegraph spoke to BestChange, the Russian OTC crypto exchange aggregator, to learn more about the current state of the OTC market. “The role of OTC is sometimes underestimated in the world market of centralized exchanges,” said BestChange Chief Analyst Nikita Zuborev. According to the exec, OTC often serves as an entry point to crypto for many users. BestChange users often start the work of OTC exchangers – gateways that act as fiat onramps to crypto – to replenish balances on crypto exchanges or sell their crypto, Zuborev told Cointelegraph.
“If in the countries of Central Europe and North America, there is a good way to fill up a bank card, then for the countries of Eastern Europe and Central Asia there is no such option, those who change Exchange remains the only good way to work with cryptocurrency,” said Zuborev. The CEO also indicated that the company’s latest activities could have a positive impact on the crypto OTC sector, saying:
“Thanks to the FTX director fiasco, our sector can see a great reception of users even outside our traditional market. We predict that 2023 can be the year of payback and rapid development of printers.
Founded in 2007, BestChange enables crypto-to-fiat transactions through Visa and Mastercard as well as services such as PayPal, Payoneer, Skrill, and others. Currently operating under the jurisdiction of the Russian Federation, BestChange plans to gradually move its headquarters to Dubai.
The president stressed that the move has nothing to do with ongoing geopolitical issues or other issues in Russia, as BestChange plans to expand across the country for some time. Also, BestChange does not expect any pressure from the international community in terms of sanctions, according to Zuborev. “The UAE continues to remain neutral on geopolitical issues, and secondly, our business model does not include financial controls,” he said. BestChange lists OTC crypto exchanges in the Baltic countries or in central Europe that should follow local regulations, he said.
BestChange serves many countries, including former Soviet states such as Ukraine, Kazakhstan, Georgia, and Belarus. According to data from SimilarWeb, users from Russia and Ukraine make the best visits to BestChange, with 48% and 15% of traffic coming from these countries respectively.
“Most of the central revolutions are under pressure from the European and North American regulators, our part is represented by a small local service that obeys the laws of the country where they can serve the Russians, Ukrainians, Europeans, Africans, people living in Asia. Oceania regardless of anyone else, “he said. According to Zuborev, the global sanctions against Russia have not had a negative impact on BestChange’s OTC trading activities, but have even promoted their adoption.
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