Before the rise of centralized exchanges (CEXs), over-the-counter (OTC) trading was the go-to method of buying or selling cryptocurrency for many cryptocurrency investors. FTX Collapse Could Trigger Higher Demand For OTC crypto services as investors are looking for alternative methods to convert from and to fiat due to lower confidence in CEXs.
Cointelegraph spoke with BestChange, a Russian OTC cryptocurrency exchange aggregator, to learn more about the current state of the OTC markets.
โThe role of OTC is sometimes underestimated amid the comprehensive marketing of centralized exchanges,โ said BestChange chief analyst Nikita Zuborev. According to the executive, OTCs often act as an entry point to cryptocurrencies for most users.
BestChange users often turn to the services of OTC exchangers (portals that act as fiat access to cryptocurrencies) to top up their balance on a cryptocurrency exchange or sell their cryptocurrencies, Zuborev told Cointelegraph.
โIf for the countries of Central Europe and the countries of North America there are quite convenient ways of direct replenishment from a bank card, then for the countries of Eastern Europe and Central Asia there are no such options, and exchangers remain the only convenient way to work with cryptocurrencies,โ Zuborev stated.
The executive also noted that the latest industry events could have a positive effect on the crypto OTC segment, stating:
โThanks to the FTX exec fiasco, our segment could see a significant influx of users even outside of our traditional market. We hope that 2023 will be the year of decentralization and the accelerated development of decentralized applications.โ
Founded in 2007, BestChange enables crypto-to-fiat transactions via Visa and Mastercard cards, as well as services like PayPal, Payoneer, Skrill, and others. Currently operating under the jurisdiction of the Russian Federation, BestChange plans to gradually move its headquarters to Dubai.
The executive stressed that the relocation has nothing to do with ongoing geopolitical or other issues in Russia, as BestChange has been planning to expand beyond the country for a while.
Also, BestChange does not expect any pressure from the global community in terms of sanctions, according to Zuborev. "The UAE continues to be neutral on geopolitical issues and secondly, our business format does not involve handling money," he said. OTC cryptocurrency exchangers listed on BestChange are located in the Baltic countries or central Europe and must comply with local regulations, he noted.
Related: Russia Intends To Launch A 'National Crypto Exchange'
BestChange serves several countries, including post-Soviet states like Ukraine, Kazakhstan, Georgia, and Belarus. According to data from SimilarWeb, users from Russia and Ukraine manufacture the most visits on BestChange, with 48% and 15% of traffic coming from these countries, respectively.
โMost centralized exchanges are under pressure from European and North American regulators, and our segment is mainly represented by small local services that obey the laws of the country of location so that they can serve Russians, Ukrainians, Europeans, Africans, residents from Asia, Oceania. independently of each other,โ she stated.
According to Zuborev, the global sanctions against Russia have not had a negative impact on BestChange's OTC marketplace services, but have even driven further adoption.
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