Nasdaq Powers Seven Crypto Exchanges

[LaltctalksL]

Nasdaq is now working with seven crypto exchanges to bolster security and technical capability, bringing the ecosystem up to institutional-grade financial standards. Forbes reports that only two of the seven, Gemini and SBI Virtual Currency, have been publicized.

Cryptocurrency exchanges aiming to use Nasdaq’s fraud surveillance technology are expected to undergo intense due diligence reviews. Exchanges that pass the assessment are granted access to proprietary technology that Nasdaq uses to monitor traditional stock trading volumes for fraud.

Nasdaq’s head of exchange and surveillance Tony Sio says,

“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.”

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

In early 2018, the Winklevoss twins hired Nasdaq to conduct market surveillance for Bitcoin and Ether trading on their New York-based exchange Gemini, describing Nasdaq’s SMARTS Market Surveillance tech as a key component of 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.”

According to data compiled by Investopedia, $9 million in cryptocurrencies is lost to fraud every day. Such losses total over $3.2 billion a year. Hacks alone are reported to have cost the industry at least $1 billion.

Source: https://dailyhodl.com/2019/01/31/nasdaq-powers-seven-crypto-exchanges-as-industry-builds-ecosystem-for-institutional-investors/

[cowz]

Gemini seems to be doing all the right things now, a security audit followed by nasdaq compliance. I would not be surprised if they are the first to receive an ETF for bitcoin trading