Nasdaq Considers Becoming a Crypto-Exchange

Nasdaq Considers Becoming a Crypto-Exchange

In spite of the fact that so far 2018 has not been the best year for cryptocurrencies, lots of Wall Street bulls, as well as venture capitalist tycoons, have supported it. Among them, there is a known bitcoin-believer Tom Lee from Fundstrat’s and a billionaire Tim Draper, who recently claimed that bitcoin would reach the all-time high of $250,000 in four years.

Moreover, some experts even say that crypto-trading is currently becoming mainstream in the world of finance. And that is given the fact that 20% of financial firms, including hedge funds and trading desks in notorious banks, are interested in commencing crypto-trading during the span of 12 months.

Maybe all start aligned for cyber-assets because now it’s the second largest stock exchange in the whole world which has expressed interest in trading them. And it is, apparently, Nasdaq.

Nasdaq Is Open-Minded Towards Bitcoin

Nasdaq is looking into becoming a cyber-assets trading venue. And it’s official as the exchange’s CEO Adena Friedman told CNBC this week. However, the company does not hurry with transformations because of the regulatory scrutiny. But once everything is settled down: “Why not?” Nasdaq will say.

Friedman emphasized that Nasdaq is positive about cryptos as they can provide investors with “fair experience”:

"Certainly Nasdaq would consider becoming a crypto exchange over time. If we do look at it and say 'it's time, people are ready for a more regulated market,' for something that provides a fair experience for investors."

Waiting For The Regulation Turmoil

The main obstacle which is on the way of Nasdaq, as well as other bourses and institutional investors, is that regulatory issues have not been finalized in the US. Nasdaq’s CEO says they should be winded up before the company decides to adopt cryptos, though.

However, Friedman remains sanguine concerning the future of cyber-money. She vividly said that in her opinion cryptos are going to keep developing, the only concern is the time and resources that will be demanded by this phenomenon.

"Once you look at it and say, 'do we want to provide a regulated market for this?' Certainly Nasdaq would consider it," Friedman clarified.

No Time For Refusing Cryptos

While Nasdaq is anticipating the regulation to be ironed up, the company embraces cyber-assets.

For example, on April 25, it notified that it is going to partner with digital-coins bourse Gemini, constituted by Winklevoss twins, the early BTC investors, and supporters.

According to the agreement, Gemini will get access to the supervision tech development of Nasdaq. That will guarantee that the platform offers a just and regulated marketplace for their partakers. This was announced by Tyler Winklevoss himself, who is an exec of Gemini.

Friedman Cautious With ICO

Despite the fact that Friedman expressed her bullish views on the future of virtual assets, she is skeptical when it comes to ICOs. The Nasdaq’ CEO said that this fundraising process needs to be well-regulated.

More importantly, she supported the idea of the US Securities and Exchange Commission to consider ICOs as securities and treat/regulate them respectively.

It is important to mention that this year the SEC has clamped down an ICO which had appeared to be a fraud.

Some weeks ago the Commission said it was thinking about applying laws concerning securities to all crypto-related phenomena like trading venues and crypto-wallets. The chairman of the body – Jay Clayton – also said that the SEC dedicates a lot of time and resources to the ICO ecosystem.

Bitcoin happened to be under review by watchdogs and regulators since last year it skyrocketed by over 1,300% in price. After its price hit the record of $20,000 per unit at the end of 2018, bitcoin barely managed to recover to even $9,000 this spring, as during the first three months of 2018 it lost 48% of its mid-December value.