Former Bitmain CEO to launch a crypto OTC desk

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The former Bitmain CEO Jihan Wu decided to launch a cryptocurrency OTC (Over the counter) desk this summer, according to a piece of news from The Block.
The new OTC desk dedicated to digital currencies is named Matrix and is a trading startup that was previously incubated by Bitmain. It’s interesting to notice that after launch Matrix will include Bitmain among its biggest client companies, which will probably turn Matrix into one of the most important OTC platforms from China.
Bitmain, probably the biggest Bitcoin mining firm on Chinese soil, is known to have been involved in several attempts of going public on the Hong Kong stock exchange without much success due to the volatile nature of its business that makes future gains difficult to anticipate or predict.
So, with Bitmain and Matrix working closely together, one entity mining Bitcoin while the other offering Bitcoin to Chinese traders and investors, both companies seem to help each other rise and dominate the Chinese cryptomarket.
Though many voices in the industry may have been tricked into believing a rupture occurred between Bitmain and its former CEO Jihan Wu – who still holds more than 20% of the stake in the mining company – the entire business seems to actually be part of a well-designed strategy.
As it is well-known that Chinese authorities are not the greatest proponents of crypto trading activities and ICO token sale events, the benefits of the collaboration between Bitmain and Matrix have become obvious to all parties including the local authorities who always tried to control the Bitcoin production.
The way Bitcoin business evolves in China is still a subject of debate in the industry as more and more clues lead us to believe that Chinese users’ major interest for cryptocurrencies is only matched by the local authorities’ determination to supervise the market.
What we do know is that most Chinese investors can use OTC options to access the cryptomarket and it’s no major obstacle for those well-established players that want to buy or sell Bitcoin.

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