Exchanges

Crypto Exchange to roll out the tech that will spot market manipulation

The crypto exchange Bitstamp sees a new way forward

According to new reports coming from Bitstamp, one of the oldest cryptocurrency exchanges known in the space, the crypto exchange will be upgrading its tech. This will be in order to attract institutional investors to the industry. Based on an announcement that was made on Tuesday, the crypto exchange will be implementing the Irisium Surveillance platform in order to monitor any suspicious activities in regards to market manipulation.

The tech provider company Cinnober has recently made a partnership with Bitstamp which will provide security to the platform. Cinnober is a mainstream financial market tech provider which is a partial owner of Irisium. The crypto exchange has decided to adopt a tool that entities will be able to use like the Asia Pacific Exchange Pte Ltd (APEX) that will detect illicit behavior.

The CEO and founder of Bitstamp Nejc Kodric mentioned that:

“We are committed to crypto in the long-term and our desire is to guarantee a fair and orderly market which reflects genuine supply and demand. Exploring new frontiers in preventing market manipulation is essential for the industry to mature.”  

The Irisium website has mentioned that the company will provide tools in order to monitor manipulative behavior together with compliance from the European regulatory requirements. This also includes the regulation on Wholesale Energy Market Integrity and transparency (REMIT) and Markets in the Financial Instruments Directive (MiFID).

The crypto exchange is coming up with a tool that will be able to make the system stable while providing analytical data to enable regulators to identify, track and investigate any trading activities. These are tools that are already being utilized by the European regulators as the website mentioned.

The CEO of Irisium, Alastair Goodwin thinks the integration is a good move:

“Bitstamp’s pre-active adoption of Irisiumand close partnership with us demonstrates their desire to increase transparency, integrity, and confidence in the cryptocurrency market…Enhanced customer protection and market integrity will help drive adoption and market liquidity.” 

In a report earlier this month, Bitstamp announced that it would be replacing its own trading engine with that of the TRADExpress platform, that was created by Cinnober. The company provides solutions to entities like the London Metal Exchange.

This will be the first time that Bitstamp will set out to revamp the platform and make it more suitable for institutional investors according to Eric Wall at Coindesk.

The crypto exchange is also looking forward to becoming one of the de facto clearinghouses for its own trades.

What do you think about this technological decision made by Bitstamp? Please feel free to leave your comments down below.

coinmag

My occupation is the Research of blockchains and their practical applications in the economy. I have graduated through various levels of education, including electrical technique, Business, Psychology, and innovative technologies.

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