Cryptocurrency exchange Gemini announced Wednesday that it is partnering with Nasdaq to monitor trading activities on its platform.
Gemini will use Nasdaq's SMARTS Market Surveillance offering to automatically detect any possible price manipulation or other illicit activities, according to a Wednesday's announcement.
Nasdaq currently uses this technology to monitor its marketplaces for abnormal activity. Part of the system compares historical trading data with real-time activity to look for "unusual trading patterns that could be potential breaches of exchange trading rules and practices," as Nasdaq explains.
The cryptocurrency exchange will use it to monitor its major trading pairs for bitcoin and ether, particularly the crypto-to-crypto pairings and those involving the U.S. dollar. Additionally, any suspicious activities tied to bitcoin futures contracts will also be sought out.
Gemini chief executive Tyler Winklevoss said the move is part of the exchange's efforts to maintain a fair market. He explained:
Stepping back, Gemini has been making efforts in recent weeks to expand its exchange. In March, the company announced it may add additional cryptocurrencies – naming bitcoin cash and litecoin in particular – to its platform later this year.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.