Nasdaq has selected seven crypto platforms to use the surveillance technology it provides to fight against fraudulent and manipulative schemes. Besides, such big fishes as Gemini and SBI Virtual Currency are on the list.
According to the news reports, Nasdaq has about 20 people helping it select trading platforms that seem to be ready both technically and morally apply its anti-scam software. The head of Nasdaq’s market surveillance department Tony Sio notes that the need for a selection process became obvious just after the company launched cooperation with smaller market participants and startups.
Besides, he also commented on the way they select the crypto exchanges that express interest in the Nasdaq technology. First of all, the task force questions the potential users about their business models, products that they support. Every detail has a direct influence on the final decision.
The second phase covers the KYC and AML policies. Credibility plays the most important part here as well. Founders’ background, previous experience in the tech industry or financial markets, all that matter.
The third and last aspect focuses on the standards for token listing. Specifically, as the company spokesperson noted, whereas some exchanges like Circle and Coinbase disclose their listing criteria, others are more private, which entails some more fraud opportunities.
For reference, SBI Virtual Currencies Exchange started using the Nasdaq system in June, followed by Gemini in April. Nasdaq is said to keep on working with the crypto industry since the market is growing market, while the offered technology is a suitable tool to match applications and track suspicious activity to help customers developing their own trading platforms.