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Coinbase Is Working On A Trade Surveillance Program For Monitoring Crypto Transactions

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Coinbase is currently working on a new system called the Coinbase trade Surveillance Program.

This will attempt to find any malicious or unusual trading activity.

During the past few months, Coinbase has been creating products for institutional investors, including Coinbase Custody, Coinbase Markets, Coinbase Institutional Coverage Group and Coinbase Prime.

The products are intended to “unlock $10 billion of institutional investment money.”

Coinbase will have to make significant efforts to assure elite investors are executing large trades that the exchange managed to take measures for preventing trading, spoofing, pump and dumps and more schemes used for market manipulation.

Business Insider reported that the new surveillance program would be led by Peter Elkins, a former executive at the New York Stock Exchange.

Gemini began a similar initiative

Back in April Gemini teamed up with Nasdaq in order to monitor its marketplace.

Nasdaq’s SMARTS Market Surveillance technology is used for monitoring the activity across all of Gemini’s trading pairs.

This technology is also being used by VCTRADE which is a new cryptocurrency exchange that was just launched by Japan’s SBI Virtual Currencies.

Coinbase is among the four significant exchanges that were served subpoenas by the Commodity Futures Trading Commission (CFTC) in connection with possible market manipulation that eventually led to distorted Bitcoin and crypto prices back in December 2017.

This new program that Coinbase is working on is just another sign of the growing maturation of Bitcoin and cryptos.

More exchanges are preparing for institutional investors 

Currently, more and more exchanges are getting ready for institutional investors more ways including the following:

  • software development and infrastructure for handling a massive influx in trading volume
  • regulatory compliance to combat fraud
  • surveillance mechanisms that can prove bad actors do not control cryptos
  • security measures to prevent exchange hacks
  • stablecoins, such as Circle’s USDC that are pegged to the US dollar to reduce market volatility