Nasdaq is working with 7 crypto exchanges; Gemini & SBI Virtual Currencies onboard

31 Jan, 2019 | Updated: 31 Jan, 2019
by Will Heasman
Exchange
Nasdaq is working with 7 crypto exchanges; Gemini & SBI Virtual Currencies onboard

Nasdaq is wading evermore into the often murky waters of cryptocurrency regulation by onboarding 7 exchanges with the hopes of transforming manipulation and compliance

Nasdaq has kept mostly quiet as to which cryptocurrency exchanges they’ve started working except for two: SBI Virtual currencies and Gemini.

This new outreach from the worlds biggest exchanges is in order to quell the spread of manipulation and deceptive trading with the crypto sector.

Tony Sio, Nasdaq’s head of exchange and regulator surveillance team, spoke to Forbes recently to elaborate on the exchange’s plans to work with the crypto exchanges:

“Historically, we don’t do such a large vetting process for our clients because they are much more well-known. But as we started working with less well-known names, start-ups, then we realized we needed to do this check process.” Sio said

As reported back in November last year, Sio noted how demand from crypto exchanges for Nasdaq’s proprietary surveillance technology has increased:

“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,” Said Sio in an interview with Bloomberg.

Specific requirements

However, Sio appears to have changed his tune but specified particular provisos on the acceptance of the 7 on-boarded exchanges. Sio provided Forbes a report on these specifications, titled:

“Key Questions to Ask When Evaluating a Cryptocurrency Exchange."

The first section was called, “Business Model,” the key question of which, was “How reputable are the products available to trade on the venue?” Alluding to how much consideration NASDAQ will take in the actual products of a crypto exchange.

The next section raised the topic of “KYC/AML the key question here was: “What is the organizational structure and what are the founders’ backgrounds (i.e. tech expertise, financial markets expertise, etc.).”

The third and final section asks: “Are crypto asset listing standards in place?” interestingly, many exchanges now specify their listing process - such as Coinbase and Poloniex - in an effort to convey transparency.

Those who do not, often get questioned as to why a certain cryptocurrency was added over another, often with speculation of backroom dealings and underhandedness.

The crypto community's opinion

Crypto Twitter responded to the news with positivity:

However for Joe Saluzzi - partner at institutional agency broker Themis Trading – this step wsn’t quite big enough:

 Read more: Nasdaq looks to solve crypto market manipulationNot everyone agrees with Gemini’s ad that claim crypto requires rules

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