Private & Descreet Crypto OTC Procedures
Step 1:
Register Online
Simply register online by clicking the button below and complete the NDA, then start the KYC/AML process.
Step 2:
Complete Onboarding
Here is where you will complete the onboarding process. This is uploading all the documents required including but not limited to:
1. Copy of Drivers License or Passport if out of USA
2. Copy of a most recent utility bill (address must Drivers License)
3. Copy of a Personal Bank statement (if personal only)
4. Copy of Business Bank statement (must have matching address to articles of incorporation/formation)
5. Copy of your formed articles of incorporation/formation
(this must be a WY corporation for a few reasons. 1. so we are compliant, 2. so you can have no taxation on crypto and better identity protection. If you need one setup we can do it for $650 which includes address for 1 year, then its $135/annually to keep address.)
6. Copy of your EIN document from IRS
7. If representing sellers/buyers then they must be disclosed with drivers licenses or passports and a power of attorney must be presented. A attorney verification call will be performed.
NOTE: If seller is selling a large daily amount of coins or if a buyer is looking to buy large amounts daily, then they will be required to deposit at least one full weeks worth of funds or coins with OCM to fulfill that weeks purchase or sell order. Each day a new spot will be confirmed. This is so that we get your trade closed and settled the day of the trade. This also allows us for multiple trades per day when applicable.
Step 3:
Communicate-Verification
After obtaining all the documents in step 2 above, we then setup a group chat on Signal and the buyer/seller will tell us how many coins they want to sell or buy. Then, if seller, they send us the amount of coins to their dedicated insured Obsidian OTC wallet, then we provide a spot price.
If a buyer, then buyer tells us how many coins they want, they send us at least spot plus 10% and to cover any hikes in price, and we will give them the whole amount less our transparent fee of 1.5%. Our fee covers everything we provide from insurance, to confidentiality, to ease of use, and to pay any referring party who referred us which is up to 35% of our fee.
If sellers who are looking to liquidate daily, we must verify the sellers wallet by completing a satoshi test for $1 to their OCM OTC dedicated wallet. This is to validate they have the actual amount of coins in their wallet that they are trying to sell. Again this is typically done for larger deals that are doing as an example 150 BTC per day for 40 business days which requires an agreement for esignature that would be sent out during this step.)
Step 4:
Confirm-Close
After step 3 is completed (and any agreements for longer daily trades are signed,) the trade amount has been communicated, funds or coins are in OCM custody, then we will confirm a spot price and then close by sending you your coins directly to your wallet of choice or bank wire funds directly to your bank. This usually happens same day. If in a contract with us, then we will look to execute another trade that day on your behalf however for all longer daily trades, we need agreements in place and at least 1 weeks worth of trade funds or coins in our posession in order to execute and close daily. At the end of every week on Friday before noon, they fill us up again with more funds or coins and we prepare for the following week.
OTC EDUCATION ON PROPER EXPECTATIONS
The Reality Of Trade Sizes
Here are some things that will hopefully set proper expectations. No buyer or seller can nor will they ever buy/sell 100,000 Bitcoin in one transaction. Even if you put all of the largest exchanges together they don't have that all on hand for one day's trade. Not to mention most banks will not allow that large amount to come through without some type of hold. Can you get your Bitcoin purchase or sold in larger quantities? Absolutely but here are the proper expectations.
The average higher daily trade (per trade) is around 250-500 BTC per day. This is pretty decent volume of around $14m to $30m per day and keeps slippage down more so than the higher amounts. Now can 1,000-2,500 BTC trades be done per day, yes but you get exposed to slippage. This may come from mulitple providers in multiple trades and may take a little bit to coordinate but yes its doable. Anything higher than that is typically doable but takes days to get setup in which you could already be hitting that by doing
1,000 - 2,000 per day depending on the size.
NO FEES - Lack of Transparency
Many OTC desks will try to tell you there is no fee, when in all reality there is. They are just not disclosing your fee which means they can quote you any spot price with any fee built into it. Example, with us we are transparent charging 1.5% fee (over $250k, 3% if under) and if we communicate a spot price of $58,350, then that is what we were getting the spot quote from our liquidity provider.
Those that build their fees into spot would have quoted you for the same 1.5% a spot price of $57,450,12 when actual spot is $58,350, so buyer/seller beware! We are very competitive with our fee and are very transparent so you always know what you are getting. Soon that fee will become a donation that you can write off for our services. Stay tuned!
Going Through Mandates or Attorneys
Now there are high net worth individuals who use family offices, or have attorneys that they work with. We are prefectly ok working with attorneys, however we must still know who their customer is and obtain an ID from them along with a power of attorney so that we remain compliant. What If that attorney was a dirty a and was stealing clients funds?
We need to make sure that attorney actuall has a power of attorney specifically for those clients who's coins hes liquidating or funds that are being dispursed for compliance purposes. We never disclose anyones information ever as this info is highly discreet and trust from our clients and partners is of the upmost importance.
ENQUIRY
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When you partner with Obsidian Capital Management for your digital asset needs, you get far more than just a single solution company, you get a purpose driven partner. Click the Register Button below to register or if you want to speak to one of our advocates, then Click Schedule A Call button.
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