Wintermute OTC head Jake highlighted that banks involved in cryptocurrency trading function as brokers rather than traders. According to recent guidance from the Office of the Comptroller of the Currency (OCC), national banks are permitted to facilitate crypto trades but are prohibited from holding positions or trading for profit. Jake explained that banks purchase assets from clients and swiftly transfer them to liquidity providers, thereby avoiding price risk. This approach aligns with technical analysis strategies in crypto, emphasizing execution over holding. Banks, therefore, act solely as intermediaries, unable to engage in long-term value investing in the crypto market.
Wintermute OTC Chief: Banks Act as Brokers in Crypto, Not Traders
Disclaimer: The content provided on Phemex News is for informational purposes only. We do not guarantee the quality, accuracy, or completeness of the information sourced from third-party articles. The content on this page does not constitute financial or investment advice. We strongly encourage you to conduct you own research and consult with a qualified financial advisor before making any investment decisions.
