Bitfinex Subsidiary Ethfinex Launches New Decentralized OTC Trading
- Ethfinex launches new decentralized OTC desk
- The announcement comes after an investigation that regulators initiated a few months ago
Bitfinex announced that it has released a decentralized OTC trading based on Ethfinex. The information was released by Bitfinex on June 3. With this new service, users will be able to conduct large trades on different ERC-20 tokens with other crypto investors. The new platform will be called Ethfinex Trustless.
Ethfinex Launches New Service For Traders
The cryptocurrency exchange Bitfinex announced that it is launching an over-the-counter (OTC) trading through Ethfinex. There are many other decentralized exchanges and are offering OTC services, however, this is a decentralized OTC platform. The exchange will be offering a new platform that will connect two traders: a buyer and a seller.
We’re proud to unveil an important development in our decentralised offering – @ethfinex Trustless OTC, a blockchain enforced Over-the-Counter service. Get started today https://t.co/iIFtnzdg5a pic.twitter.com/pKSFeHaiuP
— Bitfinex (@bitfinex) June 3, 2019
According to the co-founder of Ethfinex, Will Harbone, the new platform will allow buyers and sellert to find each other externally.
“This is peer-to-peer exclusively, so buyers and sellers for the moment find each other externally, or are connected by agents, and then initiate the trade, generating a URL they can send to their trading partner to accept the trade,”
During a conversation with The Block, Harbone said that they do not have custody of users’ funds. Indeed, the custody is decentralized until the trade is settled. The fees will be 0.02%. At the same time, the cryptocurrencies supported are going to be “compliant ERC-20” tokens rather than the ones that are currently listed on the exchange.
Ethfinex was launched back in September allowing users to trade more than 50 different ERC-20 digital assets. It is worth mentioning that the new Ethfinex Trustless OTC has no Know Your Customer (KYC) or signup process, however, individuals from the United States and other jurisdictions are not going to have access to this platform.
LocalBitcoins, a recognized P2P Bitcoin trading platform has decided to remove its cash trading option from the service, according to a Redditor. Apparently, the goal is to be compliant with regulations in the European Union (EU).