Amid allegations of fraudulent practices such as market manipulation, the crypto industry has not yet had the reprieve that comes from full regulatory acceptance. This was clearly the message delivered by SEC in the recent rejection of the Bitcoin ETF as applied for by the owners of Gemini.
However, Nasdaq Inc. seems to have better ideas on how the crypto industry could get things going its way by cleaning up the shady practices that have continue to slow down its acceptance as mainstream means of value exchange and investment. The company hosted a closed door meeting in Chicago to discuss ways to help improve the image of the crypto industry according to reports by Bloomberg.
A source knowledgeable on the issue said agenda of the meeting was to find ways to ensure that the cryptocurrency industry gets rid of the negative perceptions that have hindered it from validating its role in the global markets.
Although Gemini was represented at the meeting, the company is yet to make statements regarding the meeting. Neither has Nasdaq released its own statement.
High on the agenda was regulatory considerations for cryptocurrencies and what tools and methods would be necessary for effective supervision. The Nasdaq Chief Executive Officer, Adena Friedman has been an advocate of regulation for cryptocurrencies. Her firm has also been instrumental in resolving challenges concerning digital currency exchange.
The company was hired by Gemini to conduct surveillance for bitcoin and ether trading as well as the Cboe Global Market’s Inc.’s Bitcoin futures. Nasdaq announced this week that it is assisting five exchanges on issues bordering on technology. Some of the exchanges mentioned were Gemini and SBI Virtual Currencies.
The Nasdaq is one of the institutional businesses that have continued to monitor and support the crypto industry. Friedman, the Nasdaq CEO said in June concerning cryptocurrencies, “I do believe that over time we’re going to find that there is really utility”. She believes that digital currencies are the “right next step in the space of currency evolution although the jury is still out on which of the virtual tokens to become a global means of value transfer on the internet”
“How it evolves and which of the cryptocurrencies may or may not be the one that ultimately gets embraced, I think that really the jury is still out on that,” she said. “But I do think the idea of a more globalized payment mechanism that is more efficient than what we have today allows for money to transfer across countries and certainly supports the Internet economy.”
The source said the meeting would not be the last of its kind as the company strives to fashion out ways of helping the digital currency ecosystem find legitimacy and acceptance among mainstream users and policy makers.
The discussants were particularly worried about issues of illiquidity, thefts, fraud and lack of custody service and slowness of Wall Street in adoption of the coins as an investment instrument.
The Coin market has been beleaguered with issues of manipulation prompting the Justice Department to launch an investigation.