As a virtual currency, Bitcoin has attracted much attention in recent years, and its over-the-counter trading has attracted much attention. However, there has been controversy over the legality of Bitcoin over-the-counter trading. In this article, we will conduct a comprehensive analysis of Bitcoin over-the-counter trading from multiple perspectives such as law, risk and regulation, and reveal the current situation where legality and risk coexist.

Bitcoin over-the-counter trading, as an unconventional trading method, has attracted the attention of many investors and traders. In this transaction, buyers and sellers directly trade digital currencies through the over-the-counter platform, bypassing traditional exchanges. This decentralized trading model provides investors with greater flexibility and autonomy, but it also brings certain legal risks.

First, we need to clarify the legal status of Bitcoin as a virtual currency. In many countries, Bitcoin has not been formally recognized as legal tender by legislation, so its legal status is somewhat ambiguous. This brings certain legal risks to Bitcoin over-the-counter trading, and some lawless elements may use its anonymity to carry out illegal activities, such as money laundering and smuggling.

In addition, there are also regulatory issues in Bitcoin over-the-counter trading. Due to its decentralized characteristics, regulators often find it difficult to effectively supervise and manage this area. This provides an opportunity for some lawless elements, who may conduct illegal activities such as online fraud and gambling through Bitcoin OTC transactions, which brings certain security risks to society.

However, just like the two sides of a coin, Bitcoin OTC transactions also have their legitimacy and positive significance. First, as an emerging financial instrument, Bitcoin's OTC transactions provide investors with more diversified investment options, which helps to promote the development of the financial market. Secondly, Bitcoin's decentralized characteristics give it a certain ability to prevent risks, which can avoid risks in the traditional financial system to a certain extent.

However, to achieve the legalization of Bitcoin OTC transactions, the government, regulators and industry associations need to work together. The government should strengthen legislation, clarify the legal status of Bitcoin, and establish a sound regulatory system; regulators should strengthen supervision of Bitcoin OTC transactions and increase efforts to crack down on illegal activities; industry associations should strengthen self-discipline, regulate market order, and protect the legitimate rights and interests of investors.

In summary, the legitimacy and risks of Bitcoin OTC transactions coexist. While actively promoting the development of Bitcoin OTC transactions, we must also be vigilant about the legal risks and regulatory loopholes that exist therein, and jointly maintain the order and stability of the financial market. Only under the premise of legality and compliance can Bitcoin OTC transactions truly play its role in promoting economic development and bring more opportunities and choices to investors.

The four most famous international exchanges:

Binance INTL	OKX INTL	Gate.io INTL	Huobi INTL
China Line　APP DL	China Line　APP DL	China Line　APP DL	China Line　APP DL

Note: The above exchange logo is the official website registration link, and the text is the APP download link.

This question can be said to be a question that many investors are concerned about. Before answering this question, the editor of the currency circle will popularize what is Bitcoin OTC trading? Bitcoin OTC trading, also known as Bitcoin underground trading, mainly refers to other aspects of Bitcoin trading that are not conducted through formal and legal channels and platforms such as exchanges, such as small-volume personal online transactions, large-volume offline face-to-face transactions, one-hand transfer of coins, that is, on-site transfer of coins to the buyer's wallet address, and one-hand payment. After understanding Bitcoin OTC trading, let's return to the topic. Is Bitcoin OTC trading legal? The following editor of the currency circle will give you a comprehensive analysis of whether Bitcoin OTC trading is legal?

 Comprehensive analysis of whether Bitcoin OTC trading is legal?

If it is not limited to domestic, it is strictly a blank area of supervision. This means:

No supervision

What can be seen by the regulators in OTC trading is that one account in Alipay sent a sum of money to another account, or a bank account. But they don't know what was traded. Moreover, the guarantor of many transactions is not subject to the laws of a certain country, such as localbitcoins in Finland, and it is useless for China and the United States to regulate.

In fact, no one cares if you make a note, not to mention that the guarantor in the middle reminds you not to make a note.

2. No one cares if you are cheated in Bitcoin trading, so you must pay attention to safety.

An investor was cheated of 0.06BTC when trading on localbitcoins, which was worth 400 euros at the time. In fact, it was not the problem of the transaction guarantor, but the reason why Paypal cheated. Because Paypal is not like Alipay and bank transfer, it is transferred once it is transferred. Paypal's transfer can be withdrawn, so when trading Bitcoin, you must pay attention to avoid this pitfall. At least in terms of legal currency transfer, you must choose a payment method that cannot be withdrawn. (Bank transfer, Alipay, WeChat are all fine)

At that time, a transaction was made on Paypal. Because I didn't trust Paypal very much, I immediately transferred the money from Paypal to Deutsche Bank after receiving it. Later, the payer made a charge
back and withdrew the payment, and Paypal changed the investor's account balance to -400 euros.

Later, Paypal called me every now and then to threaten and collect debts. Investors said that they had evidence of transactions with buyers and could send them to you by email, but they didn't listen. The emails I received were all no-reply emails. They kept saying that if I didn't fill up the account, I would face some dangers. The payment would be withdrawn at will. Even if there was no balance in the account, I could still collect the debt. I don't believe that Paypal was not in the same group with these scammers.

Later, a Paypal victim group appeared, and it was found that it was a small matter. There were many people who were defrauded of 2870 euros, 7300 US dollars, 4200 British pounds and even larger amounts. Some of them were working with laywers and have not seen the problem solved until now.

 What should I pay attention to when trading Bitcoin over the counter?

Over the counter trading, there is a special term in the Bitcoin circle, called OTC. According to the situation and experience that the author has learned from many years of observation, the following issues must be paid attention to in the over-the-counter transactions of Bitcoin:

1. Verify the legality of the source of funds. This is also very important, because according to actual investigations, many illegal funds have the intention of laundering by purchasing Bitcoin. Once the seller's bank card enters the illegal funds, it will most likely be frozen by the bank department in a short period of time, and there will be a lot of subsequent troubles.

2. Fix the rights and responsibilities of both parties in the form of contracts or effective legal documents, such as determining whether the price at the time of the actual transaction is based on the real-time transaction price of a certain exchange, as well as the time limit for payment and coin payment, as well as the terms such as liability for breach of contract and identification method, so as to avoid unnecessary disputes during or after the transaction.

3. For large-scale transfers, especially cross-border order business, please be sure to take personal safety precautions, and seek help from relevant departments when necessary. In case of malicious arrears of the final payment or delayed coin payment, you should call the police for help in time, and you can also disclose relevant information to the community to prevent more people from being deceived.

Generally speaking, trading with the help of well-known trading platforms or professional intermediaries can greatly resolve such risks.

Through the above introduction, I believe everyone has understood the question of whether OTC Bitcoin transactions are legal. In fact, for investors who want to conduct OTC Bitcoin transactions, the most important thing is to confirm the authenticity of the transaction object. This may be overlooked by many first-time traders. When they see someone placing an order, they rush to arrange for the allocation of funds or withdrawals from the platform, but they don’t know that many orders are false orders. In the end, it is often a waste of time and effort, wasting a lot of material and human resources.