Nasdaq To Help Crypto Market In Protecting Against Fraudsters
Nasdaq, the US stock exchange, announced the possibility to solve the issues of the crypto sphere, which suffers from fraud and many other manipulations, Bloomberg reports.
The company has spent dozens of years developing tools to protect securities, cash, and other assets and can use its mechanisms to eliminate manipulations and fraud, which often penetrate the crypto sphere.
As a rule, regulatory authorities, brokerage companies, and financial exchanges have research groups that apply advanced technologies to identify and analyze all possible irregularities, including “pump and dump” schemes, insider trading, money laundering, as well as “spoofing” and “layering” strategies.
Regulators are concerned that the crypto sphere is prone to fraud as rapid price fluctuations are used in it, there are no laws and rules. There are many examples of criminal cases related to cryptocurrency.
The Nasdaq technology is already used by the Gemini crypto exchange, created by the Winklevoss brothers. The first requests for the use of the technology came two years ago, but their number had increased significantly by the end of 2017.
At the same time, the company does not plan to work with all applying firms. Many of them are at the initial stages of development and are not considered reliable, Nasdaq employee Tony Sio stated.
As previously reported, Nasdaq will use Azure blockchain technology from Microsoft in its work.