Cameron and Tyler Winklevoss may have very first risen to prominence for their complicated relationship with Facebook Inc. (FB), but the famous twin-brother investors have shifted their concentrate te latest years. One of their latest projects, Gemini Vrouwen, is a cryptocurrency exchange that has recently made significant moves ter an effort to stand out from the surplus of the crowded field.
According to a report by BTCNewsToday, just days ago the digital currency exchange announced a fresh partnership with Nasdaq te an effort to preceptor markets. At the same time, Nasdaq CEO Adena Friedman hinted at the possibility of the foundational stock exchange adopting cryptocurrencies at some point ter the future, pending the stability of regulatory efforts that the industry has yet to see realized. The partnership has analysts and cryptocurrency enthusiasts wondering exactly what could be ter store for Gemini and if this will be the budge that cements the exchange’s place spil a major player ter the crypto space.
SMARTS Market Surveillance Technology Te Play
Gemini will reportedly be the very first digital currency exchange to make use of Nasdaq’s SMARTS Market Surveillance Technology. According to Nasdaq, this technology system aids compliance teams ter reducing surveillance challenges including “translating regulatory guidelines/rules governing trading voeling into trading alerts” to minimize potential violations te trading, “efficiently analyzing and managing alerts and outputs,” and “sourcing, capturing and maintaining gegevens elements required to conduct a accomplish review of all trading activity.”
Considering the evolving position of the U.S. Securities and Exchange Commission on the subject of cryptocurrencies overheen the past several years, spil well spil the hesitation on the part of major financial institutions to come in into the space because of the regulatory status of thesis investment vehicles, a partnership with Nasdaq could be a tremendous sperzieboon for Gemini. Presently, SMARTS is te use with 17 regulators and 140 market participants te 45 marketplaces.
Nasdaq does not yet have a digital currency exchange component, but the company has worked ter partnership with numerous exchanges. Still, there is slagroom for improvement te the relationship inbetween a traditional exchange like Nasdaq and the cryptocurrency and blockchain worlds more generally, Friedman has indicated that “ICOs need to be regulated” and that the “SEC is right that those are securities and need to be regulated spil such.” (See also: Nasdaq CEO Hints at Future Cryptocurrency Exchange.)
Potential Benefits for Gemini
Making use of SMARTS could permit Gemini to seek out and eliminate unusual trading behavior te an effort to reduce market manipulation, which remains a significant threat ter the exchange industry broadly and ter digital currencies specifically. Tyler Winklevoss suggested that “[Gemini’s] deployment of Nasdaq’s SMARTS Market Surveillance will help ensure that Gemini is a rules-based marketplace for all market participants.”
The partnership also comes at a time when cryptocurrency exchanges have seen greater levels of scrutiny than everzwijn before. With the threat of fraudulent activity, hacks, scam ICOs and other nefarious activities taking place te the cryptocurrency world seeming to grow more menacing all the time, exchanges like Gemini have bot increasingly motivated to offerande users a secure, semi-transparent practice that will not be at risk of running afoul of regulatory measures waterput te place by government agencies.
Gemini Makes Other Moves Spil Well
The partnership with Nasdaq is not the only step that Gemini has taken to set itself chic from other digital currency exchanges. Just weeks ago, the Winklevoss’ company announced a step toward large-scale volume exchange when it launched so-called block trading for its users. Thesis large trades can now be accomplished off-book, published with a delay of several minutes te order to minimize the risks of localized volatility, which proceeds to be a concern for cryptocurrency traders around the world.
Earlier this year, the Winklevoss brothers also exposed plans to launch a Posible Commodity Association, a self-regulating organization for digital currency markets that also aims toward efficiency and transparency. While the proposed project has yet to take effect, it wasgoed met with a cautious welcome by many ter the digital currency space. Volgers believe that an organization of this type would help to maintain innovation te the cryptocurrency space while also facilitating issues of liquidity and pricing, among other things. (See also: Winklevoss Twins Unveil Proposal for Self-Regulation of Crypto Markets.)
The precies influence of the partnership inbetween Gemini and Nasdaq remains to be seen, however, if it is successful, it may prove to be a transformative switch for the cryptocurrency exchange world.
Investing te cryptocurrencies and Initial Coin Offerings (“ICOs”) is very risky and speculative, and this article is not a recommendation by Investopedia or the writer to invest te cryptocurrencies or ICOs. Since each individual’s situation is unique, a qualified professional should always be consulted before making any financial decisions. Investopedia makes no representations or warranties spil to the accuracy or timeliness of the information contained herein. Spil of the date this article wasgoed written, the author wields bitcoin and ripple.