Procedure

 

 

Buy/Sell Procedure

How To Buy/Sell Bitcoin? General Steps

STEP 1

BTC Volume, Rate

1a. Choose the deal showing which side is paying for the escrow fee or the brokerage fee.

1b. Established % gross, % net and % commissions

1c. Established chains on buyer side and seller

side

1d. NDNC signed with OTCbid

STEP 2

LOI, POF, POC, KYC, AML

2a. Buyer shows LOI and POF. Seller to confirm legitimacy of fund available for purchase.


2b. Seller shows POC (A to B wallet). Buyer to confirm  legitimacy and availability of coins ownership. 


2c. For full compliance, Buyer and Seller are required to verify through KYC and AML verification process.

STEP 3

Contract Signed SPA, IMFPA

3a. Seller sends 1 satoshi


3b. Issue contract  SPA through lawyer, bank etc.

 

3c. NCNDA, IMFPA signed

3d. Letter of agreement signed with confirmed details of the final transaction.

3e. Escrow agreement signed

STEP 4

Escrow Lawyer, bank


4a. Escrow, b2b transact

Buyer transmits funds to escrow account. Escrow will authorise Seller for bitcoin transfer.

4b. Seller transmits bitcoin to Buyer, Escrow validate btc and Buyer, and  authorise funds transferred from Escrow to Seller.

4c. Escrow transmits funds to Seller, less fees and discounts, and distributes commissions to brokers, dealers, mandates, etc.

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Buyer/Seller Process

Buyer Process

  • KYC/AML Verification

  • Buyer submits/completes application form for KYC/AML compliance checks and verification process.

 

  • Letter of Intent {LOI)

  • Buyer submits a Letter of Intent (LOI) offering bid to purchase BTC

 

  • Proof of Funds (POF)

  • Buyer shows up-to-date secure screen sharing to verify bank accounts and available funds.

 

Seller Process

  • KYC/AML Verification

  • Seller submits/completes application form for KYC/AML compliance checks and verifications process.

 

  • Bid Acceptance

  • Seller reviews Letter of Intent (LOI) and accepts bid to sell BTC to buyer

 

  • Proof of Coin (POC)

  • Seller shows private wallet information to confirm validation of BTC and Seller performs A to B wallet test for validation.

 

Escrow Transaction

In General

Escrow Process:

  • 1. Create an account / transaction with Escrow Agent

  • 2. Both parties agree to procedures / conditions

  • 3. Buyer deposits funds in Escrow account

  • 4. Seller sends Bitcoin to Escrow wallet

  • 5. Bitcoin is sent to Buyer

Option 1

  • 1. Parties agree on the Terms of the Transaction and execute a Sale and Purchase Agreement (SPA)

  • Buyer and Seller sign a Letter of Agreement or SPA with details of the agreed transaction. After vetting POF and POC, IMFPA to be signed by all parties (50/50 split)

  • 2. Buyer, Seller and Escrow Agent execute an Escrow Deed

  • Buyer, Seller and the Escrow agent sign Escrow agreement

 

  • 3. Buyer Transfers Funds into the Escrow Account

  • Buyer deposits funds to nominated Escrow agency

  • 4. Seller Transfers BTC to Escrow Agency

  • Seller transfers BTC to nominated Escrow agency

  • 5. Escrow Agent confirms receipt of funds and coins

  • Escrow Lawyers analysed, confirmed funds, coins and cleared history. Escrow agent provide evidence to parties. 

 

  • 6. Escrow Agency Transfers Funds to Seller

  • Funds in Escrow transferred to Seller's Bank Account

 

  • 7. Escrow  Agency Transfers BTC to Buyer

  • Seller confirmed receipt of funds, lawyers transfer Seller's BTC to Buyer's private Wallet

 

  • 8. Escrow Transfers Funds to Brokers

  • Escrow distributes commissions to brokers, dealers and mandates etc.

Option 2

  • 1. Parties agree on the Terms of the Transaction and execute a Sale and Purchase Agreement

  • Buyer and Seller sign a Letter of Agreement or SPA with details of the transaction. After vetting POF and POC, IMFPA to be signed by all parties (50/50 split)

  • 2. Buyer, Seller and Escrow Agent execute an Escrow Deed

  • Buyer, Seller and the Escrow agent sign Escrow agreement

 

  • 3. Buyer Deposits Funds into the Escrow Account

  • Buyer transfers funds to nominated Escrow agent

  • 4. Escrow Agent confirms receipt of funds

  • Escrow Lawyers analysed, confirmed funds, coins and cleared history. Escrow agent provide evidence to parties. 

 

  • 5. Seller transfers Bitcoin to the Buyer

  • Seller sends bitcoin to Buyer's wallet

  • 6. Escrow Agent Releases the Funds to the Seller

  • Seller confirmed receipt of funds, lawyers transfer Seller's BTC to Buyer's private Wallet

 

  • 7. Escrow Agent Transfers Funds to Brokers

  • Escrow distributes commissions to brokers, dealers and mandates etc.

Option 3

  • 1. Parties Sign Letter Of Agreement / Sales and Purchase Agreement (SPA) and IMFPA

  • Buyer and Seller sign a Letter of Agreement or SPA with final details of the transaction. After vetting POF and POC, IMFPA to be signed by all parties (50/50 split)

 

  • 2. Buyer Transfers Funds to Escrow

  • Buyer transmits funds to nominated Escrow agency. Once the funds received, Escrow agency will authorise Seller to initiate BTC transfer.

 

  • 3. Seller Transfers BTC to Buyer

  • Seller transmits BTC to Buyer and confirms with Escrow agency for validation. Escrow agency will validate with Buyer, and authorise Buyer's funds to be transferred from Escrow to Seller.

 

  • 4. Escrow Transfers Funds to Seller and Brokers

  • Escrow company transmits funds to Seller, less fees, discounts and commissions. Escrow distributes funds or commissions to brokers, dealers and mandates etc.

Procedures To Avoid Scams:

  • Seller works with bank to bank procedure stated in the contract. Seller is not working on MT103/72, MT799 or MT760 procedures. It is not negotiable.

  • Non-existent conditional swift or improperly 103/202 (Source: Aldo-Link)

  • How the misuse of SWIFT MT 202 is fuelling financial crime - Calert

  • MT199 is now necessary to send from buyer ́s bank to seller ́s bank to confirm buyer ́s availability of funds

  • Seller got scammed before, that ́s why for example the MT199 is now necessary to send from buyer ́s bank to seller ́s bank to confirm buyer ́s availability of funds. The reason is, one buyer in the past did a proof of funds (POF) and he faked a bank website, where he logged in and showed balance of funds, which were visible but not real, because everything was fake. The buyer has sent money to the seller ́s bank account and after 24 hours the money was flashed out and disappeared. That ́s why the seller is now waiting until money is cleared and it will take max. 72 hours to clear the money in seller ́s bank to avoid being scammed in this way again. 

  • 100K BTC : The minimum tranche size is 5,000 BTC. Our seller is a wholesaler having no intention to make deals with small amounts anymore. In the past, buyer ́s signed a contract for 100k BTC and got a big discount. Once they started with a 50 BTC trial, they were very happy to get a big discount and then the buyer ́s disappeared. The discount was stated for 100k BTC and not for 50 BTC. The seller decided then to start only with a minimum tranche of 5,000 BTC. It is not negotiable.

  • RECOMMENDED PROCEDURE :

  1.  Seller sends a draft SPA. Within 24 hours, buyer will fill out with buyer´s required details, SIGN and return the SPA to the seller. Within 24 hours, seller will fill out all required details, SIGN and send back the SIGNED SPA on a PDF format.

  2. A video call is made between buyer and seller. Proof of funds (POF) and proof of coins (POC) will be exchanged during the video identity verification by the buyer and the seller as follows:

  • Identity: Original Passport must be presented on video by both parties. Seller will ask for additional ID if necessary.

  • Wallet: Buyer´s receiving wallet will be submitted privately to the seller.

  • Proof of funds (POF): Buyer has to login to his/her bank account to show the proof of funds (POF).

  • Proof of coins (POC): Seller will play the recorded proof of coins video (POC) with personalized code given by the buyer. (No Satoshi or A-B wallet test available).

  1.  Buyer´s Bank Officer will initiate an MT199 communication to seller´s bank, informing the bank of the upcoming transfer with stated exact date of the transaction.

  2. Upon the confirmation of the seller´s Bank Officer, seller issues the invoice and buyer pays the agreed amount of BTC using MT103 Cash Wire Transfer, or Telegraphic Transfer {TT}. Then provide the official bank slip to the seller.

  3. Upon the confirmation of the seller´s designated bank of the confirmed clear receipt of payment to the seller (it takes 72 hours), the seller will release the agreed amount of the BTC to the buyer´s wallet, and then the seller will send the screenshot to the buyer as proof showing that the BTC has been sent.

  4. Buyer has to wait until the six {6} confirmation has been achieved and the Bitcoin {BTC} is finally sitting in buyer´s receiving wallet. Buyer will make it known to the seller by providing the screenshot of the confirmed complete transfer.

  5. Seller pays commission to all involved parties according to the annexed IMFPA-[Insert Code……], and move to the next tranche until contract is exhausted.