Crypto Exchange Gemini to Monitor Trading Using Nasdaq Tech

Cryptocurrency exchange Gemini announced Wednesday that it is partnering with Nasdaq to monitor trading activities on its platform.

Gemini will use Nasdaq's SMARTS Market Surveillance offering to automatically detect any possible price manipulation or other illicit activities, according to a Wednesday's announcement.

Nasdaq currently uses this technology to monitor its marketplaces for abnormal activity. Part of the system compares historical trading data with real-time activity to look for «unusual trading patterns that could be potential breaches of exchange trading rules and practices,» as Nasdaq explains.

The cryptocurrency exchange will use it to monitor its major trading pairs for bitcoin and ether, particularly the crypto-to-crypto pairings and those involving the U.S. dollar. Additionally, any suspicious activities tied to bitcoin futures contracts will also be sought out.

Gemini chief executive Tyler Winklevoss said the move is part of the exchange's efforts to maintain a fair market. He explained:

«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.»
Stepping back, Gemini has been making efforts in recent weeks to expand its exchange. In March, the company announced it may add additional cryptocurrencies — naming bitcoin cash and litecoin in particular — to its platform later this year.

Digital Asset Taps Former JP Morgan Exec for ASX Project

Fintech startup Digital Asset has hired a former JP Morgan Chase executive to work on a blockchain-based clearing and settlement system it is developing for the Australian Securities Exchange (ASX).

Stewart Cowan, formerly the bank's Asia-Pacific regional head of trading services, will join the firm as a senior product manager, Global Capital reported on Thursday. The startup, which is headed by former JPMorgan executive Blythe Masters, struck a deal with ASX in late 2017 to rebuild its CHESS post-trade settlement system.

ASX came to the decision after building proofs-of-concept and conducting trials over the course of two years, as previously reported.

The securities exchange has also previously invested in Digital Asset, which has long been considered a leader in the enterprise blockchain space.

More broadly, Cowan is the former JPMorgan executive to leave for a blockchain venture.

Amber Baldet, who led the development of the company's permissioned blockchain platform Quorum, announced her plans to depart and start a new project of her own earlier this month. Details about this venture are scarce.

Baldet's departure came just weeks after rumors that the banking giant was considering spinning Quorum off into its own independent entity first surfaced. It remains unclear what will happen to the blockchain branch going forward.

How Active Crypto Traders Can Save on US Taxes

A number of cryptocurrency traders in the U.S. are facing a tax trap.

They had massive capital gains in 2017 and have not yet paid the IRS or the state their 2017 taxes owed. However, in the first quarter of this year, their cryptocurrency portfolios significantly declined in value, and they incurred substantial trading losses.

Now, they need to sell cryptocurrencies to raise cash to pay their 2017 tax liabilities due by April 17.

Read further