Bitcoin Global News (BGN)
November 27, 2018 -- ADVFN Crypto NewsWire -- When you think
of the top Crypto exchanges, most likely Binance and Coinbase come
to mind first. On the other hand, if I asked you what the most
reliable Crypto exchanges are, would your answer change in any
way?
In most cases, people who have any
degree of familiarity with Crypto would stick with these two in
both situations. Now, however, imagine the Crypto exchanges that
you know of that have shaky or unsavoury reputations.
With this, most people would
mention Bitfinex first, especially due to the study that was
released earlier this year and the ongoing investigation into the
ties between them and the Tether project.
Still, so many others exist. With
this and the relative regulatory uncertainty with regards to Crypto
exchanges in mind, it is logical to wonder: what really makes a
Crypto exchange trustworthy?
Coindesk published an article today
on Bitstamp and its plans to move towards being taken seriously as
a platform for institutional investors. If you are not familiar
with Bitstamp, keep in mind that Coinbase was not the only Crypto
exchange to almost directly follow Mt.Gox’s demise to the top of
the industry.
More precisely, Bitstamp was
founded in 2011, one year after Mt.Gox, with the aim of providing
similar services to European customers. Since then, it has evolved
into an EU regulated exchange that now also serves customers in the
United States and beyond.
Until recently, however, one
industry trend that they have not followed is building a trading
platform that is truly attractive to institutions.
Now that you have a basic
understanding of Bitstamp’s place history, we can circle back to
the article that was mentioned above to explain a bit about how
they have chosen to do so.
Earlier today, Bitstamp announced
that it will now be monitoring everything that happens on its
platforms with the help of an existing market surveillance provider
called Irisium.
Judging by the platform’s website,
it allows any sort of crypto or fiat exchange to monitor all user
trades and even the complete data feed of the markets involved in
these trades. Of course, it should be made clear here that this
particular market data would only be that which is directly
integrated with the Bitstamp exchange.
Therefore, we can rest assured that
Irisium is not some sort of all-powerful tool that allows exchanges
to look beyond their borders to what competitors are
doing.
If you’re wondering what Irisium’s
true use case will be for Bitstamp, it all boils down to minimizing
the risks in crypto trading for institutional investors, as
suggested above.
All in all, Bitstamp aims for
Irisium to mitigate against fraud of all sorts in a way that
institutions can trust. In doing so, they appear to be pivoting
towards new branding as a safe place for high-volume traders to
transact.
As this partnership develops, it
will be interesting to see if this proves to be the case,
especially in the face of critics who will cry
centralization.
By: BGN Editorial Staff