Avoid Market Manipulation – Sustain integrity in Cryptocurrency industry with IEO ComplianceFebruary 23, 2019
Three million dollars have been raised by Former Goldman Sachs Engineers to improve the integrity of the cryptocurrency market.
The machine learning empowered trade and surveillance platform is focused on working towards improving the integrity of the cryptocurrency market. Exchanges, market makers, hedge funds and brokers from the US and Europe are deploying the Solidus Labs trade surveillance platform.
Manipulation of the market price of cryptocurrencies is a universal challenge faced by lawmakers. It has been reported that nearly 25 of the top cryptocurrencies in the market depend on manipulated prices and volumes. This deception is well known to top regulators like the SEC.
Regulators believe that certain milestones in the cryptocurrency market can never be achieved until the market manipulation is put to check. Regularizing the cryptocurrency market by preventing market manipulation is one of the active targets of regulators.
Bitcoin ETF is one such milestone that can be achieved only when the market manipulation is put to an end. Concerns related to cryptocurrency frauds have been put to check in the US by the SEC by imposing strict rules on cryptocurrency exchanges and by requiring that ICOs should be registered under the SEC’s jurisdiction by enforcing federal securities laws.
While the financial instruments offered in the cryptocurrency market have expanded in the financial scenario in just a few years, regulators are now very particular about regulating the entire process. Regulators are not interested in any more spreading of the cryptocurrency in the financial sector before bringing in valid regularization in place.
While the concept of market manipulation is just one part of the big puzzle, it is not possible for regulators to handle the situation in a single-handed manner. Preventing market manipulation is not something that regulators can handle all alone.
Asaf Meir, the CEO of Solidus stated, “different kinds of data, operational needs, new manipulation schemes, and evolving regulation that legacy surveillance systems are unable to accommodate for sufficiently.”
Compliance from within every cryptocurrency company is essential to ensure transparency of every happening in the trading exchange platform.
The flow of cryptocurrencies in the crypto ecosystem is regulated by AML checks, KYC, red flagging, suspicious origin of funds, the suspicious destination of funds and other kinds of dark behavior.
The token issuance methodologies that have been duly stamped by regulators are coming under the brand cover of IEOs as opposed to ICOs. The IEOs also was known as Initial Exchange Offerings, and they are waiting in the regulator corridor awaiting new guidelines from the SEC. It is expected to be a mass effort. The regulation for IEO compliance is likely to be out anytime.