The Cryptocurrency ecosystem has often been defamed due to the underlying risk of frauds, scandals, and manipulation. In a paper released on Thursday, Nasdaq Inc., stock exchange operator claims that their tools developed over the decades that manage securities, currencies and other markets, can also manage digital coins without the underlying risks.
“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.”
The volatility of cryptocurrencies, along with the lack of government regulation gives a somewhat easy access to fraudulent activities, which has most authorities looking at the ecosystem with a suspicious eye. As a protective measure, the Justice Department had opened a criminal probe into possible manipulation of Bitcoin trading.
“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.”