Nasdaq Stock Market has partnered with seven crypto exchanges for proprietary surveillance as revealed in a recent report. The surveillance is aimed at transforming the manipulation and compliance issues that are prevalent in the crypto market.
Nasdaq Onboarding Of 7 Crypto Exchanges
Nasdaq’s decision to venture into the crypto market which is aimed at combating manipulation and deceptive trading that is prevalent in the crypto market has not been made explicit in recent times. The only exchanges the stock market had indicated a relationship with are SBI Virtual Currencies and Gemini.
However, in a recent press release while indicating onboarding of 7 crypto exchanges for its surveillance and proprietary technology, Tony Sio, Nasdaq’s head of exchange and regulator surveillance team noted the specifications that were considered in accepting these crypto exchanges.
Sio noted that things considered included business model, which features the question of how reputable are the products available to trade on these platforms. Also, the question on KYC/AML, which has to do with the organizational structures and what are the founder’s backgrounds. And lastly, the question on whether there is a crypto asset listing standard in place.
The stance of Nasdaq on crypto exchanges surveillance had been previously expressed in an interview with Forbes, where Tony Sio said that historically, the exchange doesn’t do such a large vetting process for its clients because they are well known. But as the exchange started working with less well-known names startups, then it realized there was a need to do the check process.
Also, Sio noted last year that there had been increasing demand for its surveillance and proprietary technology. He noted then that the exchange now gets approached every week or two demanding for its technology. He also stated that the exchange will not work with all of the firms though a lot of them are at the early stage or not reputable yet.
Nasdaq Surveillance and Proprietary Role In The Crypto Market and Twitter Responses
The Nasdaq surveillance and proprietary role in combating manipulation and deceptive trading in crypto space could be essential in driving institutional fund which is key for the development of the industry.
There were responses from some Twitter users. One of the responses to the new development stated this;
“Very interesting… states they are working with seven exchanges. The SEC has clearly indicated that market manipulation is the biggest hurdle to an ETF and if one was to base their ETF price on seven exchanges that all utilize NASDAQ’s market surveillance platform that might help.”
Also, another noted that;
“All this good news during this long term downtrend should indicate that the bear market is (almost) over.”