The Winklevoss twins’ Bitcoin [BTC] exchange to use Nasdaq’s market surveillance

Gemini, the crypto exchange founded by the Winklevoss twins, announced today that they will be using Nasdaq’s SMARTS, a surveillance technology to monitor criminal activities at its venue. It will keep a check on transactions in the US dollar, Bitcoin, and Ethereum during trading and auctions.

Thin trading volumes during closing auctions usually increase the risk of fraudulent activities, which will be monitored by the surveillance system. Most importantly, it will also surveil Gemini auction process which determines the Bitcoin XBT futures contracts.

In a statement, Tyler Winklevoss, the Chief Executive Officer of Gemini said:

“Since launch, Gemini has aggressively pursued comprehensive compliance and surveillance programs, which we believe betters our exchange and the cryptocurrency industry as a whole. Our deployment of Nasdaq’s SMARTS Market Surveillance will help ensure that Gemini is a rules-based marketplace for all market participants.”

Valerie Bannert-Thurner, the Senior Vice President at Nasdaq said:

“Gemini has been a leading voice in advocating for stronger transparency and thoughtful regulation of the cryptocurrency markets – views we deeply share and have put into practice as a market operator and technology partner”

He further explains that the application of SMARTS shows how committed they are in making use of market technology in non-traditional marketplaces. Gemini maintains its standards related to the capital reserve requirements as it is regulated by the New York State Department of Financial Services [NYSDFS].


This award-winning trade surveillance system ensures that the common surveillance challenges are minimized, which includes:

  1. Translating regulatory guidelines/rules governing trading conduct into trading alerts that effectively identify potentially abusive trading behavior
  2. Efficiently analyzing and managing alerts and outputs, and demonstrating appropriate review and escalation of alerts
  3. Sourcing, capturing and maintaining data elements required to conduct a complete review of all trading activity

Eric Mergen, a crypto HODLer, trader, miner, said:

“Appropriate regulation is good and will attract the (huge) institutional money that will bring about the next wave… The evolution continues..”

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