OTC Crypto Trading Booming In Russian & Chinese Markets

A number of countries have imposed a blanket ban on the cryptocurrency industry citing lack of regulations, massive price fluctuations and high risk as factors that warrant cryptocurrencies being banned. China, India and Russia are among these countries who have taken a tough stance on the crypto industry but that hasn’t stopped crypto enthusiasts in these countries from indulging themselves.

Local media in Russia have examined the local markets and found that there has been a massive spike in over-the-counter (OTC) crypto traders in a number of popular cryptocurrencies including Bitcoin.

The OTC market in Moscow alone is alleged to touch $50 million on weekdays which is quite an achievement given the fact that cryptocurrencies do not have a clear regulatory framework in Russia.

The Russian government is aware of the massive interest in cryptocurrencies and the growth of the OTC market. Legislators have put forward as many as three bills addressing cryptocurrencies and crypto businesses that propose a framework for crypto exchanges, initial coin offerings (ICOs) and crypto trading but all three bills have been delayed till the end of the year.

Only when Russia approves a crypto related bill and releases a regulatory framework will regulated crypto exchanges be permitted. As of now it is not illegal for Russians to deal in cryptocurrencies but it is not very clear if crypto exchanges can launch operations in the country.

Crypto Shops Flourishing In Russia

Since there are no major crypto exchanges setting up shop in Russia, small crypto shops have opened up all over the country, especially in Moscow and are doing brisk business with OTC trading. These small crypto shops charge traders between 1 to 2 percent on each trade and make a significant profile on a daily basis.

Similar Trend In China Taking Place

The growth of OTC crypto trading is not limited to Russia. China has also witnessed an increase in OTC crypto trading even though the Chinese government has made it illegal for locals to engage in any form of crypto trading.

The crypto traders in China operate with a lot more secrecy in order to avoid the authorities but if you are a crypto enthusiast and need an OTC trader, it isn’t very hard to find a small time crypto trader or shop to exchange your fiat money for crypto. Crypto analysts believe that this trend will continue to increase in places like Russia, India and China irrespective of what crypto policies these countries end up adopting.

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