Cryptocurrency Q&A
Does phemex support OTC crypto trading?
Does phemex support OTC crypto trading?
noah_harrison_philosopher
Sun Jun 16 2024
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7 answers
1410
Could you please clarify if Phemex offers Over-The-Counter (OTC) crypto trading services? I'm interested in understanding if their platform facilitates direct transactions between parties without going through a centralized exchange. OTC trading is often preferred for larger transactions due to its privacy and flexibility. Is this an option available on Phemex, and if so, could you provide some insight into how it works? Additionally, are there any specific requirements or limitations I should be aware of when engaging in OTC trading on Phemex? Thank you for your assistance in clarifying this matter.
7 answers
CryptoMagician
Mon Jun 17 2024
The Phemex website declares support for OTC crypto purchases catering to US clients. However, it is important to note that contract-based crypto trading, specifically leverage or margin trading, is prohibited within the United States.
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Valentina
Mon Jun 17 2024
It is worth mentioning that OTC (Over-The-Counter) trading typically involves larger transactions that are negotiated directly between buyers and sellers, bypassing traditional exchanges. This type of trading can be particularly useful for institutions or individuals seeking to make large crypto purchases or sales.
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Stefano
Mon Jun 17 2024
This regulatory framework creates a degree of ambiguity for US-based traders. Despite the ban on leverage/margin trading, US citizens are able to set up, verify, and fund their Phemex accounts without any hindrance.
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BlockchainBaroness
Mon Jun 17 2024
Despite the regulatory constraints on leverage/margin trading in the US, Phemex seems to have found a niche in the OTC market, catering to the needs of its American customers. Its ability to offer these services without violating local laws speaks to its commitment to compliance and regulatory adherence.
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ZenFlow
Mon Jun 17 2024
My personal experience with Phemex as a US resident has been smooth. I encountered no issues during the account setup, verification process, or funding my account.
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