Kraken OTC Head Claims Activity Has Increased 2,000% Since 2018

  • Head of Kraken's OTC desk claims activity has increased twenty-fold since 2018. 
  • Predicts the price of bitcoin will rise as supply drops relative to demand. 

The head of cryptocurrency exchange Kraken’s over-the-counter (OTC) desk claims that the platform has experienced a twenty-fold increase in activity since 2018. 

OTC Trading

Nelson Minier, who leads the OTC division at Kraken, made his statement on the podcast The Scoop on Aug. 20. He claimed that bitcoin and ethereum, which rank first and second in total market capitalization, are the “whales of our desk,” and see the most activity. Minier also estimated that bitcoin cash (BCH), monero (XMR) and USDT made up the remainder of the top five in terms of trading volume. 

The OTC head also gave a prediction for the price of bitcoin, explaining that demand will continue to rise while supply will be cut during next May’s halving,

“I don’t see demand for this asset going down. But I do know that supply is gonna get cut in half, some time May 2019. And I think another thing I know about Bitcoin is that higher price is the best marketing tool we have.”

OTC trading continues to gain popularity as cryptoassets provide an alternative to fiat and the traditional investment markets. More analysts are beginning to refer to bitcoin as a potential “safe haven,” particularly with global economic trouble brewing on the horizon. 

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Two Brazilian Crypto Exchanges Close Following Change in Tax Laws

  • Two Brazilian exchanges have been forced to close in the face of strict new regulations.
  • Exchanges are required to keep track of all transactions made with cryptocurrency or pay fines. 

Two Brazilian cryptocurrency exchanges have been forced to shut down following the enactment of new tax laws. 

Following reports of rampant cryptocurrency-related fraud in 2019, Brazilian politicians have created and enforced new tax regulations for the industry of cryptocurrency. 

According to a report by Bitcoin.com, exchanges Acesso and Latoex are two of the first casualties of the increased regulation. Both exchanges have decided to end operation, rather than pay the hefty fines and comply with strict regulation in the face of shrinking trading volume. 

Pedro Nunes, co-founder of Acesso Bitcoin, told Portal do Bitcoin, 

After the Federal Revenue Service introduced these rules we noticed a significant decrease in the traded volume. We also feel that the market has cooled off for smaller exchanges.

The new regulations, implemented in August 2019, require traders and brokerages to report all transactions involving cryptocurrencies. Failure to comply results in penalties ranging from 500 BRD to 1500 BRD ($120 - $360). 

Exchanges say that compliance with the new regulation requires expensive investment into new resources, which has been untenable for smaller and less profitable organizations.

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