Bitstamp, one of the oldest cryptocurrency platforms, is updating its technology arsenal in an attempt to attract institutional investors.
The exchange announced on Tuesday that it is implementing the Irisium surveillance platform to monitor suspicious activity and market manipulation. After the recent collaboration of Bitstamp with Cinnober, technology provider for the main financial markets and partial owner of Irisium, the cryptographic exchange will now adopt a tool that entities such as Asia Pacific Exchange Pte Ltd (APEX) use to detect illicit behavior .
"We are committed to long-term encryption," said Nejc Kodric, CEO and founder of Bitstamp, in a statement. "Our desire is to ensure a fair and orderly market that reflects genuine supply and demand, and to explore new frontiers in the prevention of market manipulation is essential for industry to mature".
According to the Irisium website, the company provides tools to monitor manipulative behavior and compliance with European regulatory requirements, such as the Market Abuse Regulation (MAR), the regulation on the integrity of the energy market and transparency (REMIT) and the directive on financial instruments (MiFID).
"The system provides analytical tools and data to enable regulators to identify, track and investigate any business" and "is already used by European regulatory authorities," says the website.
Alastair Goodwin, CEO of Irisium, said of the integration:
"Proactive adoption by Bitstamp of Irisium and close cooperation with us demonstrate their desire to increase transparency, integrity and confidence in the cryptocurrency market. … Advanced customer protection and The integrity of the market will contribute to promoting market adoption and liquidity ".
Earlier this month, Bitstamp announced it would replace its trading engine with the TRADExpress platform created by Cinnober, a technology company that provides solutions to entities such as the London Metal Exchange.
This was just the first step in Bitstamp's effort to renew its platform and make it more suitable for institutional investors, Cinnober's cryptocurrency, and lead blockchain Eric Wall to CoinDesk at the time.
The next step, also in collaboration with Cinnober, for Bitstamp will be to become in fact the clearing house for its commercial activities, added Wall.
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