According to Forbes reported on January 30, Nasdaq, the world’s second largest stock exchange, revealed that its market surveillance technology has been used by seven cryptocurrency exchanges.
So far, only two of the seven cooperating cryptocurrency exchanges have disclosed this information, operated by the Gemini exchange of Winklevoss twins and the Japanese financial services giant SBI Holdings. VCTrade Exchange.
Nasdaq said that the SMARTS Market Surveillance system is a cross-market, cross-asset monitoring tool that correlates real-time and historical data with detection patterns to track illegal market activities, such as money laundering transactions.
According to a Nasdaq representative told Forbes, the company evaluates potential cryptocurrency customers based on three broad criteria: the exchange’s business model, understanding your client program (KYC), anti-money laundering, exchange governance And control measures.
According to Forbes, the first two standards reflect Nasdaq’s special focus on reputation. The final standard includes a survey of the transparency of the platform in the process of listing new crypto assets.
It is reported that approximately 20 Nasdaq employees are responsible for reviewing the cryptocurrency exchanges submitted to determine whether they are not only technically capable, but also have a “moral tendency” to use anti-market manipulation tools wisely. Tony Sio of NASDAQ Market Supervision told Forbes:
“Historically, we don’t do such a large-scale review for well-known customers. But when we started working with lesser-known start-ups, we realized we needed to do this.”
In November last year, Nasdaq disclosed its partnership with US investment company VanEck, which used the SMARTS system to jointly launch a series of regulated and monitored digital asset products.
Some cryptocurrency exchanges have used other Nasdaq technologies in the past. For example, the recently launched DX Exchange, a token-based asset trading platform, uses the Nasdaq Financial Information Exchange (FIX) protocol.
Just this week, Nasdaq joined Galaxy Digital Holdings, a commercial bank focused on cryptography by Citigroup and Mike Novogratz, which invested $20 million in a Smart contract blockchain platform for capital markets.
Earlier this month, Nasdaq President and CEO Adena Friedman said she believes the encryption industry will play a role in the global economy in the future, saying that “the technology itself is A genius and creative invention.”