OTC Trading Rules: A Comprehensive Guide for Secure Peer-to-Peer Crypto Transactions

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Over-the-counter (OTC) trading is a cornerstone of the cryptocurrency ecosystem, enabling users to buy and sell digital assets directly with one another in a fast, flexible, and often more private manner. To ensure fairness, security, and compliance, all participants must adhere to clearly defined OTC trading rules. This guide outlines essential principles, user responsibilities, and risk management protocols designed to protect both buyers and sellers in peer-to-peer transactions.

Whether you're new to crypto or an experienced trader, understanding these guidelines helps prevent disputes, avoid account restrictions, and maintain trust within the trading community.


Core OTC Trading Principles

All users engaging in OTC transactions agree to the following foundational rules:

Buyer Responsibilities

After creating an order, buyers are required to:

  1. Complete payment within the specified time frame before clicking “I have paid.”
  2. Use a real-name verified payment method that matches their account identity.
  3. Transfer funds directly to the seller’s designated recipient account using instant到账 (real-time) transfer methods.
  4. Obtain prior approval from the seller if using non-instant transfer options.
Note: Non-instant transfer methods currently include Alipay-to-bank transfers, WeChat-to-bank transfers, or single large transfers (over 50,000 CNY) made between 5:00 PM and 9:00 AM. These may change based on evolving payment gateway policies.

Seller Responsibilities

Once an order is generated, sellers must:

  1. Provide a platform-verified payment account.
  2. Release digital assets promptly after receiving full payment—within the allowed timeframe.
  3. Refrain from requesting order cancellation without buyer consent.
  4. Accept the agreed-upon price once the order is created, unless renegotiated with mutual agreement.

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Anti-Money Laundering (AML) Compliance

All users must comply with strict anti-money laundering standards to maintain platform integrity:

Failure to comply may result in temporary or permanent account restrictions.


Handling Buyer Irregularities

Certain behaviors by buyers can disrupt transactions or indicate malicious intent. Below are common scenarios and their resolutions.

1. Frequent Order Cancellations

If a buyer cancels orders (or allows them to expire due to late payment) four times in one day, their buying privileges will be restricted. Two consecutive days of such activity leads to broader account limitations.

2. False Payment Confirmation

Clicking “I have paid” without actually transferring funds gives the seller the right to cancel the order. Two such incidents in a single day trigger partial account restrictions. If the disputed amount exceeds 50,000 CNY, the account will be locked for 48 hours.

3. Unjustified Disputes

Filing an appeal without cause while no payment has been made allows the seller to cancel the transaction. Two complaints of this nature in one day lead to functional limitations on the buyer’s account.

4. Paying the Wrong Account

Transferring funds to an incorrect recipient—other than the one listed in the order—allows the seller to cancel. The buyer bears full responsibility for misdirected payments.

5. Premature "I Have Paid" Click

If a buyer clicks “I have paid” before sending funds:

6. Non-Real-Name Payment Accounts

Using a payment method not tied to the user’s verified identity (including corporate accounts) constitutes a violation. Sellers may reject the trade and refund within 48 hours. Two such violations result in account restrictions.

7. Payment During Valid Timeframe, But Order Is Cancelled

If a buyer pays fully or partially but cancels the order—or it expires—the seller decides whether to complete or cancel:

8. Partial Payments Before Confirming

For multi-transfer orders, confirming before completing all payments:

9. Incorrect Payment Amount

10. Seller Does Not Receive Payment Within One Hour

After “I have paid” is clicked:

11. Unverifiable Real-Name Info on Receipt

12. Seller’s Account Experiences Technical Issues

13. Suspicious Payment Notes

Including terms like “BTC,” “Bitcoin,” “crypto,” or “Huobi” in transfer notes:

14. Malicious Sniping of Low-Priced Orders

Detected by risk systems:

⚠️ Reminder: Any delay by sellers in releasing assets or issuing refunds will result in partial account restrictions.

⚠️ Behavioral Policy: Aggressive language, insults, sarcasm, or provocation during third-party calls results in immediate account limitations.


Managing Seller Irregularities

Sellers also face accountability for improper conduct or technical oversights.

1. Responsibility for Recipient Accounts

Sellers are fully responsible for all displayed and shared recipient details. Providing someone else’s account—whether intentionally or under influence—results in asset ownership being awarded to the buyer upon confirmed payment.

2. Price Disputes After Order Creation

Unless mutually agreed upon with the buyer, sellers must honor the original price and release assets on time.

3. Seller’s Account Malfunctions

Buyer chooses:

4. Failure to Provide Valid Payment Method

If a seller fails to supply a working method and causes cancellation:

5. Invalid or Mismatched Real-Name Receivers

Non-advertiser sellers who fail to bind real-name-compliant accounts (e.g., QR code name ≠ listed name):

6. Accepting Non-Real-Name Payments

Sellers who accept payments from unverified sources bear all resulting risks and face restrictions if reported.

7. Delayed Asset Release After Full Payment

If seller receives full payment but fails to release assets within 20 minutes:

⚠️ Same behavioral policy applies: abusive communication during calls leads to penalties.

Risk Control & Security Violations

The platform enforces strict measures against high-risk activities.

1. Refusing AML Verification

Users who decline or ignore follow-up checks after triggering AML alerts may face:

2. Reselling Coins Off-Platform for Profit

Confirmed cases of buying via OTC and reselling elsewhere may lead to:

3. Account Sharing or Proxy Trading

Accounts found lending, renting, or acting as agents for others are subject to:

4. Card Testing Behavior

Sending small amounts to other users without valid orders—and failing to justify it—may lead to:

5. Handling Illicit Funds or Assets

Introducing known or reasonably suspected "black money" or "dirty coins" from other platforms or groups results in permanent account and affiliate account bans.

6. Confirmed Money Laundering Involvement

Direct or indirect participation in money laundering leads to immediate and permanent suspension of all associated accounts.

7. Judicially Frozen Accounts

Accounts frozen by legal authorities are locked per official documentation. Renewal requires reapplication by the authority. Users cannot request unfreezing through the platform.

8. Legal Data Requests

When courts or agencies request user data (e.g., subpoenas), the platform may restrict certain functions temporarily during review.

👉 Stay compliant and trade safely—learn more about secure OTC practices now.


Frequently Asked Questions (FAQ)

Q: What happens if I accidentally click “I have paid” too early?
A: The seller can choose to wait for your payment or cancel the order. Communicate immediately via chat to avoid disputes or penalties.

Q: Can I use my company bank account for OTC trades?
A: No—even if the legal representative matches your real name, corporate accounts are considered non-personal and violate real-name requirements.

Q: How long does a seller have to release crypto after receiving payment?
A: Sellers must release assets within 20 minutes of confirming full receipt, unless otherwise specified in exceptional cases.

Q: What should I do if my bank transfer isn’t instant?
A: You must get explicit approval from the seller before using delayed methods like Alipay-to-card transfers.

Q: Will I lose my crypto if I get reported once?
A: A single report doesn’t automatically result in loss—but repeated violations can lead to restrictions or permanent bans.

Q: How does the platform detect malicious behavior like sniping low-price orders?
A: Advanced risk systems monitor patterns such as rapid-fire ordering, frequent cancellations, and abnormal trading volumes to identify abuse.


Final Notes

Understanding and following these OTC trading rules, peer-to-peer crypto guidelines, and anti-money laundering protocols is crucial for every user. By maintaining transparency, respecting deadlines, and communicating clearly, traders build trust and contribute to a safer marketplace.

👉 Protect your trades and maximize efficiency—join a secure OTC environment today.