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April 27, 2018, 12:05:29 AM |
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Nasdaq CEO Prepared to Consider a Role in Regulating Digital Currencies
Nasdaq CEO, Adena Friedman, told CNBC April 25, 2018, that investors are expecting a more regulated market for digital currencies to ensure they are treated fairly. Friedman believes digital currencies are here to stay, and in time, Nasdaq would be prepared to include them in their exchange.
“I believe that digital currencies will continue to persist it’s just a matter of how long it will take for that space to mature. Once you look at it and say, ‘do we want to provide a regulated market for this?’ Certainly, Nasdaq would consider it.”
Friedman confirmed she agreed with the SEC on ICOs adding “The SEC is right that those are securities and need to be regulated as such.” In March 2018, the SEC announced that they considered almost all digital currencies to be securities and would also look to regulate businesses offering digital wallets.
As an illustration of why digital currencies need much more stringent regulatory control, an article has been published on the Steemit network illustrating one of the many pump and dump schemes used in the crypto ecosystem. The author of the article went to great lengths to record the process of artificially inflating the price of a digital currency for the personal financial gain of a group of investors. The Steemit article includes dozens of screenshots from a Telegram channel in which several key crypto influencers discuss which cryptocurrency they are going to pump.
Friedman would argue that investors that take time to analyze the various cryptocurrency projects and then purchase the digital currencies are being scammed by these crypto influencers. As the price starts to fall, following the pump and dump scheme, some investors will believe that there is a problem with the project and sell their digital currencies at a loss.
To clean up the industry, the Gemini exchange, founded by the “Facebook” Winklevoss twins, has announced a partnership with Nasdaq to monitor market manipulation on their exchange. A press release dated April 25, 2018, issued by Nasdaq, confirms that Gemini will be the first crypto exchange to implement NASDAQ’s SMARTS Market Surveillance Technology. The crypto community welcomes tighter controls to help stamp out the nefarious practices of a small element of scammers within the community.
Originally published at cryptodisrupt.com
I'm extremely excited about this news. This could be massive for mass adoption. What are your thoughts?
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