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Exchanges wants to use the platform developed by Nasdaq for the financial market to create a secure and regulated environment. The SMARTS Trade Surveillance system requires, more than just the payment for use, that the exchanges follows the criteria of the platform. Therefore, it’s necessary that companies prove the ethical and technical capability to use the system correctly.

Among the exchanges that requested the use of SMARTS, only seven received the aprovation and two has publicly disclosed it. SBI Virtual Currency and Gemini are the publicly traded exchanges approved in the three Nasdaq valuation processes. The three steps consist of Exchange Governance and Controls, Business Model, and AML / KYC.

In the first valuation process the exchange need to answer key questions about the exchange and the reputation of the assets offered. In the second stage includes the verification of the processes of Know Your Customer (KYC) and Anti-Money Laundering (AML). Finally, the third step consistes to verify the public data or lack transparency of the exchange’s internal processes.

Nasdaq enters the crypto world

Recently Nasdaq has announced the development of its platform to trade in the future cryptoactive market. Nasdaq has made large investments in companies in the crypto world, such as the ErisX exchange. Therefore, the approximation of the institutional financial market and the crypto market has occurred naturally. The use of the Nasdaq platform by the exchanges can starts a new age to crypto market.

The news portal Toshi Times reported The approval of the exchanges for use of the Nasdaq platform on the second day of February.