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Perfectly legal: Bitcoin over the counter, below the radar
#cryptooverthecounter: Private-to-Private Bitcoin Trade
The acronym P2P BTC OTC stands for buying and selling Bitcoin or other cryptocurrencies in a private environment. It avoids the use of crypto exchanges, including so-called "OTC desks" and their regulatory hurdles and requirements. The private BTC transaction is complex and only advisable when other transaction structures fail or result in a less favorable outcome. Therefore, this option is very favorable (only) if the circumstances are right.
Buying and selling cryptoassets over-the-counter, without the protection of regulated institutions, poses unique risks, challenges and pitfalls. In a malfunctioning transaction, the Bitcoin seller can lose his coins without getting paid. The buyer could pay without receiving title to the cryptocurrency. In addition, the payment could be challenged, reversed, and charged back later, while the blockchain transfer is immutable. In the worst case scenario, an ill-advised Bitcoin investor could find himself unwittingly involved in criminal behavior.
As a result, it is imperative to fully understand the transaction design, structuring options, and risk mitigation options when participating in a private-to-private Bitcoin trade. Proper oversight by experienced counsel will keep P2P BTC OTC safe and protected from both loss and illegality.
Bitcoin Over-the-Counter | Insights
#cryptooverthecounter: Terminology, Details, Opportunities
A closer look at the over-the-counter crypto transaction reveals a wide range of legal, tax, financial and practical issues. Private-to-private buying and selling is aimed at different participants than the crypto exchange at the so-called OTC desk, which is basically subject to the same regulatory requirements as the exchange itself.
Before entering into the transaction, it is essential to understand the requirements of being RWA (ready, willing and able) and the extent to which the coins must be good, clean, clear and of non-criminal origin. It is essential to understand the extent to which the transaction structure is designed to allow KYC (know your customer), AML (anti-money laundering) and CDD (customer due diligence) investigations to be replaced by secrecy, confidentiality and privacy considerations in accordance with a prudent N2K (need-to-know) policy.
The implications of various payment mechanisms should be considered. These include the amount and currency; whether the funds are held in a bank account, in cash, or otherwise; and the location, jurisdiction, ownership, control, and authority over the funds. Emphasis should be placed on the various escrow arrangements and their impact on overall risk management. Proof of funds, proof of coin and procedural considerations should also be discussed in detail. Finally, participants need a holistic view of real-world cases and good (or bad) industry standards.
Modern Crypto Asset Protection Strategies
#cryptooverthecounter: Professional Advice and Transaction Support
The advisory firm understands that there are legitimate reasons to give privacy a higher priority than is offered in the regulated crypto industry. It advises on how to take advantage of existing opportunities to avoid KYC investigations and keep personal and business data confidential.
Based on successful hands-on experience in the Bitcoin OTC space, the firm provides comprehensive transaction support to get the deal done. It monitors and advises throughout the signing, closing, crypto transfer, payment, escrow procedures and additional steps and requirements.
Founded in 2009, PUGNATORIUS S.A. provides pragmatic and actionable advice and proactive problem solving for individuals and companies. The firm guarantees an excellent, high-touch service at every stage, as special advisor, gatekeeper, provider of opinions and statements, or as internal advisor. Innovative and independent advice and analysis for international clients and sound investment decisions.
Listen to what the firm's president has to say to an exclusive audience at the conference in Dubai.