Coincheck Launches OTC Trading Service for Bitcoin

Japanese cryptocurrency exchange Coincheck has launched an over-the-counter (OTC) cryptocurrency trading service aimed at larger clients, the firm said Monday.

While the service seem primarily to serve bitcoin trades, Coincheck said it will consider trades in other cryptocurrencies.

Coincheck said its OTC trading desk will allow customers to buy and sell a minimum of 50 bitcoins ($205,423 at press time) “quickly” at one go and at “attractive prices.” The service is available on weekdays between 10 a.m. (13 UTC) and 3 p.m. (18 UTC) Japan time.

In an OTC trading service, two parties trade directly with each other, unlike on an exchange where orders are matched between buyers and sellers.

Coincheck suffered a $530 million hack in January 2018, losing around 500 million NEM tokens from its digital wallets. The exchange was then acquired by Japanese online brokerage Monex Group for $33.5 million in April last year.

The cyber-attack also forced Coincheck to suspend its services for some months. By November, however, it had reinstated services for all listed cryptos on its platform.

Coincheck has since received a regulatory license in Japan and is now a registered entity with the Kanto Financial Bureau under the country’s Payment Service Act. It's previously said it plans to resume other features, including leveraged transactions, Japanese yen depositing through convenience stores and a scheme that lets users pay utility bills with crypto.

A number of exchanges have recently moved to launch OTC trading services. Last week, the U.S. affiliate of the Huobi Global launched an institutional group for OTC cryptocurrency trading. While earlier this year, Bithumb Global and Bittrex also launched similar services.

Bitcoin, yen image via Shutterstock