Nasdaq Believes They Can Eradicate Cryptocurrency Market’s Scandals and Fraud


NASDAQ is the second-largest stock exchange in the entire world. Even though traditional finance and the stock market have not been historically welcoming to cryptocurrency, it seems that this entity is planning to use their market surveillance technology, which will essentially “stamp out manipulation,” according to a Bloomberg report.

The stock exchange released a paper on Thursday, which described the decades that they have used to monitor currencies, securities, and other markets. With this knowledge, they have been able to eliminate manipulation, among other scams that plague digital assets. The paper said, “Regulators, brokers and exchanges have surveillance teams that monitor activity constantly and advanced technologies to help capture and analyze abusive behaviors including pump-and-dump schemes, insider trading, wash trading as well as spoofing and layering.”

One of the biggest concerns of the cryptocurrency world is the fact that many frauds in the industry tend to take advantage during fast price swings, which is only made easier with the lack of market regulation. In fact, these risks alone let the Justice Department to use a criminal probe to examine Bitcoin trading and the potential for manipulation in May this year.

Nasdaq has offered their market surveillance technology in the past to other exchanges. Though there are few confirmed cases in crypto, Gemini is one of the more popular exchanges that has used it. At the time, the senior vice president and head of risk & surveillance solutions for Nasdaq, Valerie Bannert-Thurner said that this partnership was a “major milestone.” She added that it symbolized “an important indicator of our commitment to expand the use of our market technology into non-traditional marketplaces, as well as new frontiers beyond the capital markets.”

Some crypto companies approached Nasdaq two years ago, but they did not get involved until the Bitcoin boost at the end of last year. Tony Sio, the head of exchange and regulator surveillance for Nasdaq, said in an interview, “We’re now getting approached every week or two. We won’t work with all of these firms though since a lot of them are quite early stage or not reputable yet.”

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