Why OTC rather than an exchange
Executing a large order on a public exchange moves the price against you, and the slippage on a substantial trade routinely exceeds any fee an OTC desk would charge. Over-the-counter execution puts you opposite a single counterparty at an agreed price for the whole size.
The catch is that the OTC market is where the least regulated corners of this industry live. The value of a coordinator is in insisting on the parts everyone else is willing to skip.
Our role, and the licensing position
In practice we handle:
- Identifying and screening a licensed counterparty appropriate to the size and asset.
- Coordinating the KYC and source-of-funds process, which for a transaction of any size is substantial and is where most trades stall.
- Documenting the trade terms before execution: price basis, settlement mechanics, timing, and who bears which risk between agreement and settlement.
- Coordinating the fiat leg and its banking, which is usually harder than the crypto leg.
- A closing record you can give to an auditor or a tax adviser without embarrassment.
What you will need
| Requirement | Why |
|---|---|
| Full KYC on every party | Non-negotiable for any licensed counterparty. Expect it to be thorough. |
| Source of funds evidence | For fiat entering the transaction. Bank statements alone are rarely enough. |
| Source of wealth for the assets | Where you are selling, expect questions about how the holding was acquired, sometimes going back years. |
| A bank that will accept the proceeds | The commonest failure point. Confirm this before you agree a trade, not after. |
What we decline
- Anything where the source of funds or source of wealth cannot be evidenced.
- Privacy coins and assets structured to defeat traceability.
- Counterparties who resist KYC, or who want to settle through informal channels.
- Trades presented with artificial urgency.
- Anything that looks like it is intended to move value out of a jurisdiction rather than to transact commercially.
Fees
| Item | Range |
|---|---|
| Facilitation fee | 1% to 3%, depending on size, urgency and compliance burden |
Disclosed in full before you commit to a trade, so you can see exactly what the coordination costs against the rate you are quoted.
Whose side we are on
Al Hisn Partners acts for the client and only the client. We are retained by you, we take instructions from you, and our fee is paid by you.
Our facilitation fee is agreed with you and disclosed in full before you commit to a trade, so you know exactly what the coordination costs. We are not separately paid by the desk or counterparty we introduce, and we take no referral fee for routing you to one.
Common questions
Do you execute the trade yourselves?
No. Virtual asset service provision is a licensed activity in the UAE. Execution is performed by appropriately licensed VASP counterparties. We coordinate the process, screen the counterparty, manage the documentation and run the engagement, and we tell you which licensed firm is executing.
Do you give advice on which assets to buy?
No. We are not licensed to give investment advice and we do not offer a view on price or on whether you should transact. We coordinate the execution of a decision you have already taken.
What is the minimum size?
OTC coordination only makes economic sense above a certain size, below which an exchange is simply cheaper for you. Tell us the approximate size and we will say plainly whether it is worth involving us.
Why is the banking side so difficult?
Many banks are cautious about fiat proceeds originating from digital asset sales, and will freeze or return funds without much warning. Confirming that a receiving bank will accept the proceeds, before the trade is agreed, is the single most useful thing you can do.
How long does the process take?
The trade itself is quick. KYC, source of funds and source of wealth verification are what take the time, typically days to weeks depending on size and how readily the evidence is available. Anyone promising same-day settlement on a large first-time trade is skipping something.
Who pays you, and do you ever take a fee from the other side?
Our client pays us, and only our client. We do not accept a fee, commission, rebate or referral payment from a counterparty, or from any agent, provider, supplier or institution we introduce or work alongside. If one is offered, we decline it. This applies across every service we provide, without exception.