In light of Bitcoin’s growing demand in Indian sector, Unocoin, a startup from Karnataka, has come up with a plan to facilitate higher liquidity for serious traders.
The Bitcoin exchange today announced that it has launched an over-the-counter (OTC) marketplace for traders who wish to purchase and sell Bitcoin in large quantities. The feature aims to bypass stringent exchange requirements in order to meet higher Bitcoin demands and supply. The name over-the-counter itself represents that the trade negotiations are done using an inter-dealer quotation system.
In its official statement, UnoCoin explained how it plans to execute large Bitcoin orders, stating that they will be tailored according to reference prices on other platforms such as: CoinDesk, LocalBitcoins, BTCXIndia, ZebPay, BitStamp, etc. It added:
“A customer may place an order to buy 50 BTC when the price is less than CoinDesk’s price by 100 INR [~ $USD1.5] and Unocoin shall give a call to the customer when [it] is able to honor such a request to get the re-confirmation and move with the execution of the order.”
The exchange’s co-founder and CFO Harish BV further acknowledged the need for having such a service in Indian Bitcoin sector, given the digital currency’s growing popularity in this IT-rich country.
“This was a service that more serious Indian bitcoin traders were lacking, until now,” he said.
Unocoin however didn’t mention if clients associated with OTC desk trading will require to go through KYC verification, but the legal standards seem inevitable despite India’s confusing stand towards Bitcoin regulation. Unocoin already follows the said legal procedure for its fiat-based trading accounts.
Overall, the Indian Bitcoin startup has attempted what was never attempted in the region: to improve Bitcoin liquidity for professional investors. The step to introduce OTC has also verified how Bitcoin adoption is booming all around the globe. Earlier, renowned exchanges itBit and BitX had also introduced similar services to address the growing Bitcoin volumes.