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