Home CryptoNews Companies Nasdaq brings its technology to seven cryptocurrency exchanges

Nasdaq brings its technology to seven cryptocurrency exchanges

Apparently, more than money is needed for cryptocurrency exchanges as some choose to partner with Nasdaq to improve their technology. Nasdaq is in possession of advanced patented surveillance technology that scans transactions and looks for fraudulent patterns.

Nasdaq first prepared a test that any crypto exchange willing to partner with them need to pass before they can merger. Exchanges that pass the test and are able to cover the costs of being a secondary issue will be granted access to the same surveillance technology that Nasdaq itself uses. So far only 7 exchanges were able to pass the tests and only two of them were publicized, they include, SBI Virtual Currency and Gemini.

The Three Examination Tests That Exchanges Need To Pass

Tony Sio, Nasdaq’s Head of Exchange and Regulator Surveillance Team, shared the three questions that crypto exchanges need to answer in order to pass the test. He additionally pointed out that this is a new practice at Nasqad, as their usual clients were always well known.

“Historically, we don’t do such a large vetting process for our clients because they are much more well-known,” said Sio. “But as we started working with less well-known names, start-ups, then we realized we needed to do this check process.”

KYC / AML

While the first question concerned the exchanges’ Business Model, the second section termed as KYC/AML (Know Your Customer/ Anti-Money Wash), had a series of questions with most of them relying on the exchanges’ founders’ background information as well as their expertise. The last question concerned the Exchange Governance and Controls. -This explores issues like, whether there are standards regarding the new crypto assts listings and how transparent they are.

About Nasdaq

Nasdaq is a global electronic marketplace for buying and selling securities, as well as the benchmark index for U.S. technology stocks. Nasdaq was created by the National Association of Securities Dealers (NASD) to enable investors to trade securities on a computerized, speedy and transparent system

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