Could cryptocurrency exchange Gemini end Bitcoin crime? Time will tell, as they are launching a crackdown on Bitcoin crime, that uses surveillance technology to pinpoint fraud and illegal activity. The cryptocurrency exchange was set up by the famous Winklevoss twins, who have since hired Nasdaq to launch their surveillance system to help them clamp down on crime. This will be the first for the cryptocurrency market.
The surveillance technology is called the SMARTS Market Surveillance, which has been designed to allow Gemini to monitor all of the trading pairs. This system has set the benchmark for the industry, in market surveillance, supervision and compliance. The SMARTS will enable more security to be added to the Bitcoin exchange, due to fears that criminals are taking advantage of the anonymous trading to commit fraudulent crimes.
Chief executive, Tyler Winklevoss 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.”
The fear of criminal activity has long been associated with Bitcoin, and at times has often been its biggest downfall, but in actual fact, the criminal percentage is very low. The Foundation for Defence of Democracies discovered that less than 1% of identifiable transactions between 2013 and 2016 were from illegal sources. This figure has just been dropping as well, as Bitcoin becomes more attractive to mainstream investors.
Gemini have decided to launch SMARTS after Eric Schneiderman, a New York Attorney General demanded an inquiry into 13 crypto trading platforms, which included Gemini. The aim of the inquiry was to find out more about fee structures and safety measures that were put in place in order to protect their customers accounts.
The Winklevoss twins were famously among the first who became Bitcoin billionaires, and once sued Mark Zuckerberg, millionaire Facebook founder, after it was claimed that he stole their ConnectU idea in order to help create the networking site. The twins were successful, and won $65 million in the lawsuit.