Nasdaq Reveals Its Working Alongside Seven Crypto Exchanges


Nasdaq has revealed that its currently working with seven crypto exchanges in order to strengthen security and technical capabilities, making the ecosystem up to institutional-grade financial standards. Forbes has discovered two of the seven exchanges, Gemini and SBI Virtual Currency.

Any cryptocurrency exchange that planning to utilize Nasdaq’s fraud surveillance technology is expected to undergo a very intensive diligence review. Exchanges that successfully pass the assessment will be granted access to proprietary technology that Nasdaq utilizes to monitor traditional stock trading volumes for fraud.

Tony Sio, Nasdaq’s head of exchange and surveillance had this to say,

“Historically, we don’t do such a large vetting process for our clients because they are much more well-known,”

“As we started working with less well-known names, startups, then we realized we needed to do this check process.”

Nasdaq checklist, ‘Key Questions to Ask When Evaluating a Cryptocurrency Exchange’ is being used to assess any potential clients. The document contains three sections: business model, KYC/AMIL, exchange governance, and controls. It also holds some questions such as “How reputable are the products?” and “What are the founder’s backgrounds?”

During the early parts of 2018, the Winklevoss twins hired Nasdaq to conduct market surveillance on Bitcoin and Ether trading for their New York-based exchange Gemini, having said Nasdaq’s SMARTS Market Surveillance tech was a very important factor for legitimizing the crypto space.

“Tried and true technology that’s used by some of the largest exchanges in the world, so it’s an obvious fit.”

“We love rules-based markets when the playing field is clear and straightforward, and there’s transparency.”

Our Thoughts

With a long history of fraud occurring within the Crypto space, Nasdaq’s new system will hopefully help legitimize the existence of most crypto exchanges currently in the market. Both Gemini and SBI Virtual Currency are showing a conviction by proving to their consumers that their business is legit and now a long con game. Compiled data gathered by Investopedia shows over $9 million cryptocurrencies is lost to fraud almost every day. These losses have to lead to over $3.2 a year. Reported hacks have shown to cost the industry over $1 billion minimally.

 


Like it? Share with your friends!

Keith Wang

Keith Wang is a writer and programmer specializing in bitcoin and blockchain technology. Keith has been a long time believer of bitcoin and blockchain technology and spends his free time following up with blockchain news. You can contact Keith at keith@cryptomenow.com

You may also like