Earlier than the rise of centralized exchanges (CEXs), over-the-counter (OTC) buying and selling was the go-to technique to purchase or promote cryptocurrency for a lot of crypto buyers. The FTX collapse may set off a much bigger demand for crypto OTC companies as buyers are on the lookout for different strategies to transform from and to fiat as a consequence of weaker belief in CEXs.

Cointelegraph spoke with BestChange, a Russian OTC crypto trade aggregator, to be taught extra in regards to the present state of OTC markets.

“The function of OTC is usually underestimated amid the all-encompassing advertising and marketing of centralized exchanges,” BestChange chief analyst Nikita Zuborev stated. In line with the exec, OTCs typically act as an entry level to crypto for many customers.

BestChange customers typically resort to the companies of OTC exchangers — portals that act as fiat onramps to crypto — to be able to replenish the stability on a crypto trade or promote their crypto, Zuborev advised Cointelegraph.

“If for the Central European international locations and the international locations of North America there are fairly handy methods of direct replenishment from a financial institution card, then for the international locations of Japanese Europe and Central Asia there aren’t any such choices, and exchangers stay the one handy option to work with cryptocurrency,” Zuborev acknowledged.

The exec additionally identified that the newest trade occasions may have a optimistic impact on the crypto OTC section, stating:

“Due to the fiasco of the FTX executives, our section may see a major inflow of customers even outdoors of our conventional market. We anticipate that 2023 could possibly be the yr of decentralization and accelerated growth of decentralized apps.”

Based in 2007, BestChange permits crypto-to-fiat transactions via Visa and Mastercard playing cards in addition to companies like PayPal, Payoneer, Skrill and others. At the moment working below the jurisdiction of the Russian Federation, BestChange plans to maneuver its headquarters to Dubai step by step.

The manager careworn that the relocation has nothing to do with the continuing geopolitical issues or different points in Russia, as BestChange has been planning to broaden past the nation for some time.

Moreover, BestChange doesn’t anticipate any strain from the worldwide group when it comes to sanctions, based on Zuborev. “The UAE continues to stay impartial in geopolitical issues, and secondly, the format of our enterprise doesn’t contain the dealing with of cash,” he stated. BestChange-listed OTC crypto exchangers are positioned within the Baltic international locations or central Europe and will adjust to native rules, he famous.

Russia intends to launch a ‘nationwide crypto trade’

BestChange serves a number of international locations, together with post-Soviet states like Ukraine, Kazakhstan, Georgia and Belarus. In line with knowledge from SimilarWeb, customers from Russia and Ukraine make the most important quantity of visits on BestChange, with 48% and 15% of visitors coming from these international locations, respectively.

“Most centralized exchanges are below strain from European and North American regulators, and our section is usually represented by small native companies that obey the legal guidelines of the nation of location to allow them to serve Russians, Ukrainians, Europeans, Africans, residents of Asia, Oceania independently of one another,” he acknowledged.

In line with Zuborev, world sanctions towards Russia haven’t had a adverse influence on BestChange’s OTC market companies however even have pushed extra adoption as a substitute.