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Cryptocurrency Exchange Bitvavo Adds Nasdaq Surveillance Tool to Detect Market Abuse
Dutch cryptocurrency exchange Bitvavo has partnered with Nasdaq to monitor markets for signs of illegal activity.
Bitvavo, an EU-regulated cryptocurrency exchange, said this in a Press release today, July 31, which will use the Quotation Market surveillance tool in an attempt to detect and investigate “suspected market abuse”.
Under the agreement, the Amsterdam-based cryptocurrency exchange plans to obtain trading insights and views, as well as “replicate its order book” with a “consolidated audit trail” across multiple listed assets and query “suspicious activity through a wide range of alerts.” The exchange also plans to use the tool to create reports that it will share with relevant regulators.
Commenting on the partnership, Nasdaq’s head of regulatory strategy and innovation, Tony Sio, noted that the cryptocurrency market faces “significant challenges” if it is to match the level of investor protection and market confidence of traditional markets. Sio also referenced local EU regulations, saying:
“Our market surveillance technology can play an important role in improving the integrity of digital asset trading, helping to achieve many of the goals of the upcoming MiCA regulation.”
The partnership clearly aims to address these challenges and align with recent EU initiatives. launched legislation, regulation of cryptocurrency markets (also known as Not), which imposes “strict rules and requirements” on cryptocurrency exchanges to detect and report market abuse, similar to standards for traditional financial markets, the press release notes.
Founded in 2018 by Jelle de Boer and Tim Baardse, Bitvavo has received regulatory approval from the Dutch central bank to operate the provision of digital asset services.
In December 2022, Bitvavo revealed that around €280 million of his funds were locked up at Digital Currency Group, the parent company of Grayscale, Foundry and Lun, which got into trouble following the FTX Collapse. The exchange later indicated which plans to recover at least 80% of the funds blocked by DCG following an agreement with the American cryptocurrency company.