Nasdaq to help combat fraud and manipulation in the cryptocurrency market

nasdaq fraud crypto

Nasdaq has decades of experience in protecting traditional financial instruments. According to Bloomberg, Nadsaq will use the same tools used in the currency or bond market to combat fraud and market manipulation in the cryptocurrency market. This will help to restore investor confidence.

Frauds and Scams are a serious problem for most players in the cryptocurrency market. And combating fraud is a priority for a lot of institutions, especially for crypto exchanges, looking forward to prevent illegal usage of their services. Now, Nasdaq offers help in combating fraud by using tools otherwise used for traditional financial instruments. They released a paper, stating that:

“Regulators, brokers and exchanges have surveillance teams that monitor activity constantly and advanced technologies to help capture and analyze abusive behaviors including pump-and-dump schemes, insider trading, wash trading as well as spoofing and layering,”

Recently, Gemini cryptocurrency exchange founded by the Winklevoss twins started using Nasdaq market surveillance solutions.

Tony Sio, head of exchange and regulator surveillance, recently stated that:

“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.”


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