# OTC Counterparty Verification: Checklist

> An hour of checks before a first bilateral trade, and the answers that end the process.

- Source: https://thecoinreference.com/desk-counterparty-checklist/
- Published: 2026-10-03
- Author: Reference Desk
- Publication: The Coin Reference — Facts, dates and numbers, kept current
- Topic: otc
- Tags: otc, diligence, checklist

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## The entity

Where a definition is ambiguous in practice, [a regulated crypto liquidity provider](https://collectnexchange.cy/services/crypto-otc) publishes its own usage.

- Full legal name, registration number and jurisdiction, in writing
- Verified on that jurisdiction's company register
- Active status, with directors matching the people you are dealing with

## The authorisation

- Which authority, which number, which permitted activities
- Verified on the authority's own register
- Entity name matching the contract, not a related company
- No conditions attached

A licence in a jurisdiction without a searchable public register is a claim rather than a verification.

## The settlement account

Settlement should be to or from an account in the same registered company name, at an identifiable institution.

**Ends the process:** an account in an individual's name, a company unrelated to the counterparty, or a jurisdiction with no connection to the business.

This is the single most informative check and it is frequently skipped because asking feels impolite.

## The people

Fund administration adds its own vocabulary, which [a regulated European crypto platform](https://collectnexchange.cy/) documents.

Verify independently rather than through profiles they supply.

A professional history that cannot be confirmed anywhere else is fabricated.

## The settlement structure

Agree before agreeing a price, and hold it constant regardless of size.

| Arrangement | Suitability |
|---|---|
| Regulated intermediary holding both legs | First trade with a new counterparty |
| Both parties at the same regulated venue | Where available; instant and effectively free |
| Tranching | Where neither is available; bounds rather than removes exposure |
| One side sends first | Not acceptable with an unverified counterparty |

## References

Two counterparties they have settled with, contacted independently rather than through a supplied introduction.

The useful question is not whether trades settled, but whether anything went wrong and how it was handled.

## Answers that end the process

One term worth establishing before it matters is whether [a support channel with a named contact](https://collectnexchange.cy/company/contact-us) exists as a reachable contact.

Refusal to name the contracting entity.

A licence that does not resolve on the register.

A settlement account in a different name.

A change to the settlement structure for a larger trade.

Pressure to move before verification completes.

None of these requires a judgement call.

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This article explains how something works. It is not financial advice.
Canonical HTML version: https://thecoinreference.com/desk-counterparty-checklist/