Chinese Bitcoin App BitKan Adds Over-the-Counter Trading Feature
The Chinese company BitKan, which launched in 2013, has added an OTC (over-the-counter) trading feature to its app available for overseas markets. The feature is already popular in China.
This follows the conclusion of its first round of funding, where it received a $2 million investment from Bitmain.
OTC trading feature added
In April, BitKan received $2 million of investment from the Chinese Bitcoin mining hardware company, Bitmain in its A-round of funding, allowing it to launch over-the-counter trading via its app in May. Over-the-counter trading differs from exchange trading in that trading is done directly between two parties, without any supervision of an exchange. The company explained to CoinTelegraph:
‘BitKan OTC is based on platform-level trade matching. Two types of users exist on BitKan – one is the ‘trader’, the other ‘general’. A ‘trader’ can be seen as a fiat-bitcoin exchange while a ‘general’ as the exchange’s client. The general user is able to use fiat to trade bitcoin and vice versa.
When trading, the system will match a general user with an appropriate ‘trader’; the ‘trader’ has pre-set trading tactics and waits for the client to knock on his door. BitKan will, according to local laws and regulations, perform KYC checks on the ‘trader’ as well as the ‘general’ user. For ‘brokers’, an extra layer of trader qualification checks do exist to ensure that they provide better service to the ‘general’ users.’
This post was published at Coin Telegraph on 2016-07-04.