Nasdaq meetings with crypto-currency players to give the industry legitimacy
July 27 2018 - 11:49AM
ADVFN Crypto NewsWire
Among topics discussed
were the implications of future regulation for crypto-currencies,
what the necessary tools are, and what surveillance will be
needed
New York — The road to shaking its
history of shady transactions and fraud is proving to be a long one
for crypto-currencies, but Nasdaq thinks it can help get the
industry on the path to legitimacy.
It hosted a closed-door meeting
earlier this week in Chicago with representatives from about half a
dozen companies, including traditional exchanges as well as Gemini
and other crypto-markets, according to a person familiar with the
event. The focus of the gathering, the person said, was to
encourage the industry to do things that will improve its image and
validate its potential role in global markets.
A Nasdaq spokesperson declined to
comment, but confirmed the event took place. Gemini didn’t respond
to a request for comment.
Among topics discussed were the
implications of future regulation for crypto-currencies, what the
necessary tools are, and what surveillance will be needed. Nasdaq
CEO Adena Friedman has been outspoken about the need for
regulation, with her firm now partnering with a number of exchanges
to help on several of these issues. Earlier this year, for
instance, Cameron and Tyler Winklevoss’s Gemini exchange hired
Nasdaq to conduct market surveillance for bitcoin and ether
trading, as well as the auction that helps price Cboe Global
Markets’s bitcoin futures.
"I do believe that, over time,
we’re going to find there is really utility" in crypto-currencies,
Friedman said at a Bloomberg event in June. Nasdaq disclosed this
week that it’s supplying technology to five crypto-exchanges,
including Gemini and SBI Virtual Currencies. It hasn’t named the
other three.
This will not be the last meeting
of this nature, the person said, adding there will be an ongoing
dialogue among the participants. Due to its history of illiquidity,
theft, fraud and the lack of custody services, Wall Street has been
slow to move into the space.
Earlier this year, for instance,
Bloomberg reported that the US justice department had opened a
criminal probe into whether traders are manipulating the price of
bitcoin and other digital currencies.
Source: Bloomberg
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