SALE & PURCHASE of Bitcoin (BTC) & Tether (USDT)

SALE & PURCHASE of Bitcoin (BTC) & Tether (USDT)

Sale & Purchase of Bitcoin (BTC) and USDT

Bitcoin (BTC) and Tether (USDT) are among the most widely traded digital assets globally. Institutional investors, corporations, and high-net-worth individuals often trade them through OTC desks to minimize market impact, improve liquidity, and negotiate customized settlement terms.

Standard Transaction Procedure

  1. Initial Inquiry
    • Buyer submits a Letter of Intent (LOI) or Buyer's Mandate.
    • Seller provides a Soft Corporate Offer (SCO) outlining available quantity, price, payment terms, and delivery procedure.
  2. Know Your Customer (KYC)
    • Both parties exchange corporate documents and identification.
    • Compliance checks are conducted to satisfy AML (Anti-Money Laundering) and Counter-Terrorist Financing (CTF) requirements.
  3. Negotiation & Agreement
    • Parties negotiate:
      • Cryptocurrency (BTC or USDT)
      • Quantity
      • Pricing formula (e.g., exchange spot price ± premium/discount)
      • Wallet details
      • Settlement currency
      • Transaction schedule
    • A Digital Asset Sale & Purchase Agreement (SPA) is executed.
  4. Wallet Verification
    • Buyer and seller verify wallet ownership, often using a signed message or a small test transfer.
  5. Proof of Funds / Proof of Crypto
    • Buyer may provide Proof of Funds (POF).
    • Seller may demonstrate control of the cryptocurrency, such as by completing a small test transaction or providing other mutually agreed evidence of wallet control. Private keys or seed phrases should never be disclosed.
  6. Settlement
    • Payment is made through agreed banking channels or other lawful settlement methods.
    • Cryptocurrency is transferred to the buyer's designated wallet.
    • Many institutional transactions use an independent escrow or regulated custodian to reduce counterparty risk.
  7. Confirmation
    • Blockchain confirmations are monitored.
    • Upon completion, both parties acknowledge successful settlement.

Typical Commercial Terms

  • Asset: Bitcoin (BTC) or Tether (USDT)
  • Pricing: Based on a mutually agreed reference exchange at execution time, with any negotiated premium or discount.
  • Minimum Transaction Size: Often varies by OTC provider and jurisdiction.
  • Settlement: Single trade or multiple tranches.
  • Network Fees: Usually allocated by agreement between the parties.
  • Governing Law: Specified in the Sale & Purchase Agreement.

Key Risk Management Practices

  • Conduct full KYC/AML due diligence before trading.
  • Verify wallet ownership before transferring significant funds.
  • Use reputable OTC desks, regulated exchanges, or trusted escrow/custody providers.
  • Confirm all bank account and wallet details independently before settlement.
  • Maintain detailed records for regulatory, accounting, and tax purposes.