Nasdaq SMARTS Trade Surveillance Technology is Gaining Crypto Exchange Adoption
Cryptocurrency exchanges worldwide are starting to use Nasdaq Inc’s SMARTS trade surveillance technology. And according to Bloomberg, Nasdaq Inc organized a meeting between its experts and cryptocurrency exchanges.
The most important presence was the one of Tyler and Cameron Winklevoss, representatives of the Gemini cryptocurrency exchange. Since April this year, Gemini is using SMARTS so as to monitor trading activity on their exchange.
This is a very important tool for exchanges that are trying to be compliant and regulated. Regulatory agencies are very hard on the matter and virtual currency exchanges are trying to eliminate irregularities from their trading platforms.
But Gemini is a very important exchange that must be controlled in the best possible way. It also provides information about the price of Bitcoin to the Cboe Global’s bitcoin futures. If there are good and proper prices informed by exchanges, the U.S. Securities and Exchange Commission (SEC) could have a better stance towards new bitcoin.based exchange-traded funds (ETFs) presented.
If the SEC devices to approve an ETF it could be searching for more regulated entities. Additionally, the Cboe Global ETF may be certainly the first.
But Gemini is not the first cryptocurrency trading platform that is working with Nasdaq’s SMARTS technology to monitor real-time trading activity. The system provides information about unusual activity in case is detected. There are other four exchanges that use Nasdaq’s services, including SBI Virtual Currencies.
As informed by a Nasdaq spokesperson, they had a meeting but did not confirm who attended to it. Additionally, they informed that future meetings are on the agenda to discuss cryptocurrency regulations and other surveillance methods.
Nasdaq is an important player in the financial world that wants to create a more controlled environment in the cryptocurrency world. At the same time, Nasdaq decided to sign a partnership with DX with the intention to start offering a cryptocurrency exchange using Nasdaq’s trading technology developed during the last years.
Nasdaq’s participation in the market could be very positive in the future. It will be helping to increase security in the cryptocurrency world, make exchanges more compliant with regulatory agencies, boost security and provide credibility to different platforms.