Bill Taylor/Managing Editor – Ending crime is, of course, a wonderful goal but is it really possible? Now to be sure, we are talking specifically BITCOIN (cryptocurrency) crime. The cryptocurrency exchange GEMINI, formed by the famous Winklevoss twins (Facebook left outs), aims to be the Batman crime fighter in the digital currency world.
One of the biggest concerns of regulators is how fraud, money laundering, price manipulation and illegal activity in general is being addressed by the new crypto exchanges. So, to alleviate concerns, Gemini is using Nasdaq’s surveillance technology called SMARTS to closely monitor trading. Nasdaq, which has defined itself as a fintech company, has developed a market surveillance system that is becoming the benchmark for the industry. The SMARTS system will add more security to the Gemini exchange to thwart the efforts of the bad guys (and girls) to do evil. Totally Batman, right?
Chief executive, Tyler Winklevoss:
“Since launch, Gemini has aggressively pursued comprehensive compliance and surveillance programs, which we believe betters our exchange and the cryptocurrency industry as a whole. Our deployment of Nasdaq’s SMARTS Market Surveillance will help ensure that Gemini is a rules-based marketplace for all market participants.”
To be sure, actual crime may be overrated. In fact, actual criminal activity comprises less than 1% of identifiable trading patterns, according to the Foundation for Defence of Democracies (yeah, there is such an organization, who knew?). That figure has also been dropping as Bitcoin has become more mainstream. But, perception and trust is extremely important in investing and using a new exchange like Gemini.
Regulators have been examining 13 crypto trading platforms, including Gemini, to seek information about safety, fee structures and, of course security. Obviously selecting Nasdaq’s SMART Market Surveillance systems will enhance Gemini’s credibility as an exchange leader, help satisfy regulator’s concerns and, let’s be fair, also elevate Nasdaq’s stature as a crypto leader as well. Brave new world.