Exchange or OTC desk: buying crypto as a company
When a company decides to buy cryptocurrencies — for treasury, for a project or for a payment — it faces two routes: buying on an exchange or going through an OTC desk (over-the-counter). This is not an operational detail: it changes the effective price, the risk, the traceability and even the accounting.
Exchange: the public market
An exchange is a platform where buy and sell orders meet in a public order book. You buy at the price the market expresses at that moment.
Advantages:
- Immediate access and transparent, real-time prices.
- A good choice for modest amounts and for recurring activity.
- No intermediary to contact: you operate on your own.
Limits, especially for a company:
- Slippage: a large order “eats through” the levels of the book and obtains an average price worse than the one displayed.
- Market impact: a sizeable purchase can move the price against you.
- Counterparty risk: the funds stay on the platform until you withdraw them into self-custody; the soundness of the exchange matters.
- Operational limits: withdrawal thresholds, verification times, media exposure of the order.
OTC desk: the private negotiation
An OTC desk executes the transaction off the order book, quoting a fixed price for the entire volume. You agree the amount, receive an “all-in” price and settle the transaction, often by bank transfer from/to a corporate account.
Advantages:
- Certain price on the whole volume, without slippage: you know exactly how much you will pay.
- Confidentiality: the order is not visible to the market and does not move its price.
- Suited to large amounts and one-off treasury transactions.
- Direct dialogue and typically bank-based settlement, more readable for accounting.
Limits:
- Minimum thresholds that are often high: below a certain amount the desk is not competitive or does not operate.
- You need a relationship with a reliable and regulated operator.
- Initial onboarding times (KYC, checks) before the first transaction.
How to choose
The practical rule revolves around three variables:
- Amount: below modest thresholds, the exchange is simpler; for significant amounts the OTC reduces slippage and impact.
- Frequency: recurring, granular activity suits the exchange; a one-off treasury purchase suits the OTC.
- Confidentiality and price certainty: if they matter, the OTC is the natural choice.
Many companies use both: OTC for large movements, exchange for minor adjustments.
The often-overlooked aspects
Compliance and anti-money laundering. Whatever the channel, the operator must comply with Swiss anti-money laundering obligations. For the company, what counts is being able to document the source of funds and the origin of the assets: a regulated counterparty makes everything simpler, today and in the event of future audits.
Custody. Buying is only half the job: where do the assets end up? Leaving them on the exchange exposes you to counterparty risk; moving them into self-custody or to an authorised custodian shifts the issue to key security and governance.
Accounting and taxation. The purchase must be recorded at the CHF value on the transaction date, with a documented exchange rate. Cryptocurrencies on the balance sheet raise questions of year-end valuation and, for the company, feed into the determination of taxable profit at the time of realisation. Orderly documentation from the very first purchase avoids difficult reconstructions.
Internal governance. Who authorises the transaction? Who holds the keys? Clear delegations and a dual-control principle are needed, exactly as for any significant treasury movement.
Our role
We help companies to structure the transaction: choosing the channel based on amount and objectives, setting up custody, ensuring accounting and tax traceability, governing the authorisations. Activities subject to authorisation — execution, custody, VASP services — are handled by authorised partners; structuring and advisory we handle directly.
Informational content, not advice on the specific case nor an investment recommendation. Crypto assets are volatile.
Do you want to buy crypto as a company without surprises on price, compliance and accounting? Let’s talk.