Seven crypto exchanges are now using financial surveillance technology provided by Nasdaq with only two named: Gemini and SBI Virtual Currency.
“The objective that we’re trying to work with crypto, is we see this as a growing asset class,” said Tony Sio, Nasdaq’s head of exchange and regulator surveillance team, before adding:
“So we’re working to help provide our technology, it could be around matching, it could be around surveillance, to help our customers as they grow their marketplaces.”
The exchanges had to go through an extensive vetting process to gain access to Nasdaq’s surveillance technology which ostensibly aims to prevent fraud and price manipulation.
“Gemini has aggressively pursued comprehensive compliance and surveillance programs, which we believe betters our exchange and the cryptocurrency industry as a whole,” said Tyler Winklevoss, CEO of Gemini, back in April before adding:
“Our deployment of Nasdaq’s SMARTS Market Surveillance will help ensure that Gemini is a rules-based marketplace for all market participants.”
Having secured all the necessary licenses and having put in place mass surveillance of traders, Gemini has now begun an aggressive ad campaign where they call for cryptos to be regulated.
Whether these seven exchanges count as regulated in the eyes of the Securities and Exchanges Commission (SEC) is not clear, but their main reason for not approving a bitcoin ETF has been due to the lack of financial surveillance in crypto exchanges.
It appears now many exchanges are providing SEC with what it has demanded. In addition, regulated bitcoin futures now count for a substantial percentage of trading volumes, sometime handling $125 million a day or more.
Whether that will be sufficient for SEC to green-light a bitcoin ETF, however, is not clear, but the infrastructure appears to have considerably changed since they last made a decision. So, who knows, SEC might even surprise one day afterall.