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Nasdaq Offers Assistance in Fighting Crypto Market Fraud

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Fri, 11/02/2018 - 12:43
  • Exchange operator Nasdaq Inc. сlaims that it can solve the problem of scandals that shake the cryptocurrency industry

Cover image via U.Today
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Exchange operator Nasdaq Inc. сlaims that it can solve the problem of scandals that shake the cryptocurrency industry.

Tool for laws

Now Nasdaq is completing 10-year-long work of developing tools for law enforcement to securities, currencies and other markets and can use them to curb manipulation and other scams threatening digital coins, claimes a paper released on Thursday.

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Regulators, brokers exchanges, and their surveillance teams can have advanced technologies for continuous monitoring and control of the digital currency market to analyze and prevent abusive behavior, pump-and-dump schemes, insider trading, wash trading, spoofing, and layering, the document says.

Growing popularity

Nasdaq licenses its market-surveillance technology to exchanges, including at least one cryptographic marketplace: Gemini founded by the Winklevoss twins. Nasdaq first started getting access to these services from crypto companies just over two years ago, but the demand level spiked at the end of last year, amid the rapid growth of the Bitcoin exchange rate.

“We’re now getting approached every week or two. We won’t work with all these firms, as many of them are at quite an early stage or not reputable yet,” said Nasdaq’s head of exchange and regulator surveillance Tony Sio.

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Authorities in many countries are concerned with the fact that virtual currencies are often attacked by fraudsters, who use rapid price fluctuations and lack of government regulation. This May, Bloomberg reported that the U.S. Department of Justice opened a criminal investigation into possible manipulation of Bitcoin trading.

About the author

The journalist with 10 years of experience in print and digital media. Last 2 years deeply immersed into the cryptocurrency & blockchain technology area.

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