Nasdaq To Collaborate with 7 Crypto Exchanges

Nasdaq is providing its surveillance technology for crypto exchanges who require more sustainable environment for crypto trading.

A few days back we looked into a report stating Nasdaq planning to bring surveillance technology and this would be useful for crypto exchanges.

According to Forbes, Nasdaq has already collaborated with 7 Crypto exchanges for use of its surveillance technology. But with not only money can buy this technology also the exchanges need to go through a test only they will be allowed to have access to the surveillance technology.

Until now only 7 crypto exchanges have passed the test and in it, only two Gemini and SBI Virtual Currency have made it public said Nasdaq representative to Forbes. This is a technology which crypto exchanges are willing to add to their system because it can new attract investors.

Tony Sio, Nasdaq’s head of exchange and regulator surveillance shared some questions which every crypto exchange must answer during the test given to them.

Sio also added that,

“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, startups, then we realized we needed to do this check process.”

Questions Every Firm Needs To Answer.

At Nasdaq’s offices, Sio has given details regarding how they will on board a crypto exchange. And he has discussed on three sections of questions on which the company before joining needs to answer.

Section 1, “Business Model”:
How reputable are the products available to trade on the venue?

Section 2, “KYC/AML”(Know-your-customer/anti-money-laundering): What is the organizational structure and what are the founders’ backgrounds?

Section 3, “Exchange Governance & Controls:
Are crypto asset listing standards in place?

And there are some other questions in these sections which will be presented to firms who would want to use Nadaq’s surveillance technology.

This technology by Nasdaq was first used by Gemini cryptocurrency as they had passed the test last year April. Later SBI Virtual Currency a firm based in Japan announced last year June, they have been using Nasdaq’s system.

Nasdaq’s has shown its interest in blockchain technology applications. But currently, they want to focus on this surveillance application and help their customers and their companies to grow.

What do you think about Nasdaq collaborating with crypto exchanges? Let us know in the comments below..