Circle a U.S-based peer-to-peer cryptocurrency finance company, has contracted NICE Actimize, a leader in Autonomous Financial Crime Management, to implement market surveillance and protection strategy, reports Finextra February 27, 2019.
Crypto Market Surveillance
In a bid to guard against crypto market manipulation, Circle, a fintech firm that allows users to convert, store, send and receive bitcoin (BTC) as well as altcoins, has reportedly allied with NICE Actimize, to enable the former to use Actimize’s Cloud Markets Surveillance (MS) system to protect itself against market manipulation.
Founded in 1999 by its parent company NICE Systems Ltd., the team claims that the NICE Actimize Markets Surveillance solution makes it possible for firms to detect both basic and advanced forms of market manipulation in a fast and cost-efficient manner.
The solution allows firms to fish out malpractices such as pump and dump schemes, layering, insider trading and all other severe threats to cryptocurrency trading.
That’s not all; the firm also claims that the NICE Actimize MS has a configurable rules engines that help firms to reduce costs as well as false positives by allowing them to create alert thresholds to their users’ trading activity.
Fight against Financial Crime & Remaining Compliant
Commenting on the development, Robert Bench, Head Regulatory Counsel and Chief Compliance Officer at Circle, reiterated that the firm selected NICE Actimize due to the latter’s highly functional financial crime solutions which also takes care of risk and compliance.
“Circle has adopted a strong position on policy and crypto regulatory issues that considers the safety of investors and clients, such as the financial markets compliance solutions from NICE Actimize, to meeting the needs of regulators and protecting our assets brings this commitment full circle,”
Its worthy of note that several crypto markets participants have taken advantage of the seemingly unregulated nature of the cryptocurrency ecosystem to orchestrate various unlawful trading activities like insider trading, market manipulation and more, in recent times.
As reported by BTCManager in September 2018, the New York Attorney General’s office released a 32-page report titled the “Virtual Markets Integrity Report.”
The report revealed that top cryptocurrency exchanges are not making significant efforts to curb illicit trading activities or create measures to protect consumers.
Also, earlier in November 2018, reports emerged that the creator of the controversial stablecoin Tether (USDT) was being investigated by the U.S. Department of Justice (DOJ) for market manipulation.