How to go about becoming an OTC broker?

[forbidd3nknowl3dg3]

Hey all,

This is my first post   . I've been casually researching cryptocurrency over the past couple years now. While I want to get in on the action, I don't like the idea of just investing all in. I'd much rather start providing a service in the crypto space. I've read about crypto OTC brokers and I've been thinking that brokering smaller crypto deals could be a perfect way to enter the space. Right now, I am trying to figure out exactly how one goes about offering such a service (How does one become an OTC intermediary broker?). Where would I advertise my services? Where would I find buyers/sellers to broker the deals? How can I connect with other brokers? Do I haft to worry about government regulations (i.e., would I be considered a 'money service business?)?

I understand that, of course, it is my responsibility to do my own research, but I wanted to ask if someone could point me in the right direction? That would be much appreciated

Thanks all,

-- forbidd3nknowl3dg3

[BitMaxz]

Have you tried to check the Binance OTC trade you can find it here https://www.binance.com/en/OTC-Trading
You must be verified before you can able to use this service.

Check these videos below

The guide
- https://www.youtube.com/watch?v=hAbNVBfrZCQ

How it works
- https://www.youtube.com/watch?v=QAPjg1rqteo

All other questions can be answered under faqs after you registered and KYC verified.

[forbidd3nknowl3dg3]

But is this applicable to an aspiring broker?

I want to become a broker/intermediary, not a trader (i.e., trading my own funds via OTC). I want to connect buyers and sellers, and then take a small piece of the action for myself.

[LeGaulois]

It's not as easy to become a broker on the OTC market since it's not a 'public' market. If you ask where and how to find buyers and sellers, it's perhaps because you have no demands yourself, so no use to have a service because it is based on supply and demand. Don't get it wrong, I say this because you are probably wasting your time.

Additionally, you surely need a state license and not even talking to register a company number because as you can guess, nobody would trust a random individual to deal with money. Especially in the OTC market which usually deals with a high amount of money.

You also need some knowledge in the finance industry and accounting. It's not only because you know the crypto world that you can run such a service. You have to build a network, you have to abide by the laws, verify IDs, source of funds, net worth, market analysis...
In other words: running a company.

No, it's unrelated to what you're looking for

[forbidd3nknowl3dg3]

Thanks for the reply LaGaulois!

I have a decent background in finance and accounting, so that shouldn't be a problem. I also figured that becoming an OTC broker will involve a licensing process with the jurisdiction in which I reside.

My biggest challenge right now is finding out more about the OTC market (how it works, where it operates, and how to make connects/form a network). Can you (or anyone) help me out on this front?

[hugeblack]

My biggest challenge right now is finding out more about the OTC market (how it works, where it operates, and how to make connects/form a network). Can you (or anyone) help me out on this front?

It is not a market, but a direct transaction between two parties, and in this case, you are looking for someone who sells large quantities of Bitcoin according to terms that you both agree on.

Binance gives the minimum OTC trade with more than 10K USD and then Following their TOS determines how the transaction takes place, a lot of OTC trading starts from 10 bitcoins up to 250 bitcoins or more that make place like this orders on exchanges impossible due to the lack of sufficient liquidity at the same moment or you are forced to place several orders at different prices.

The majority of OTC (“desk” ) run mining farms and therefore there is no specific buying base.
If you add information such as the country, how many bitcoins you want, how to pay, we may be able to give you better options.

[buwaytress]

Just reminded me of Localbitcoins pre-AMLD5... you used to be able to find a lot of people who actually do OTC on Localbitcoins, you know it is them when you see their buy/sell limits are in the million of dollars, and their method of payment was face-to-face (cash in person).

Contact them and you find out they almost always have an OTC website, you agree to the exact price and BTC, and it's settled off-site.

Maybe everyone like that started out p2p, and started then working with many different bigger traders to pool liquidity. And maybe this means 1 OTC broker is actually an agent for all the different owners? I did use to think if that was one way of starting it?

[forbidd3nknowl3dg3]

I think there is a misunderstanding.

I am not looking to buy or sell a large quantity of bitcoin on the OTC market. Rather, I want to learn how to become an OTC broker (the intermediary between the buyer and the seller).

How can one go about becoming a broker?

[forbidd3nknowl3dg3]

Anyone else?