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As Binance’s seeks an opportunity to lure Chinese investors in the OTC cryptocurrency marketplace, it will support fiat-on-ramp through OTC for the Chinese Yuan.
The world’s largest cryptocurrency exchange by trading volumes, Binance, said that it will launch its over-the-counter (OTC) trading platform next month. More importantly, Binance says that the OTC platform will provide gateways to deposit fiat currencies including the Chinese Yuan.
In a media session at the Shanghai Blockchain Week on Tuesday, September 17, Binance’s co-founder and chief marketing officer He Yi said that the platform will support fiat-on-ramp through OTC for the Chinese Yuan.
After China’s ban on cryptocurrencies in 2017, local investors have been much active on OTC marketplaces. By launching the OTC platform, Binance plans to explore the lucrative crypto trading market of China. Moreover, as part of its expansion strategy, Binance plans to put resources and time to have a strong footprint in the Chinese market.
Knowing that the Chinese government prohibits local crypto traders from having any access to its banks, the fiat-to-crypto OTC trading will be a critical and challenging task. After the ban in 2017, local crypto exchanges like OKCoin and Huobi moved their operations out of China but continued to offer crypto-to-crypto trading services to the local investors.
Binance’s Latest Developments
This year, crypto exchange Binance has a number of developments up its sleeves as its plans to span wide market in the crypto industry. The exchange has taken several initiatives to encourage more user participation in the crypto industry.
Earlier in January 2019, it launched Binance Coin (BNB) which is currently the top-ten cryptocurrencies by market cap. Speaking of the latest developments, Binance’s crypto trading service went live in the U.S. on Wednesday, September 18.
Besides, the crypto exchange has also received approval from the New York Department of Financial Services (NYDFS) to launch a dollar-pegged stablecoin Venus. As per the latest report, Binance has assured its stablecoin will be more government-friendly while challenging other players like the Facebook Libra.
Just last week, Binance also announced the trading commencement on its two Crypto Futures trading platforms. Binance will be competing with ICE‘s launch of Bakkt platform ahead this month on September 23. Bakkt will be offering Bitcoin Futures trading facility in physically-settled contracts.
It remains to be seen as to how Binance’s OTC trading platform gets a response from the Chinese crypto market, next month upon launch.