Nasdaq's Tech Powers Bybit EU's Quest for Transparent Crypto Trading

Bybit EU, the European arm of the global cryptocurrency exchange Bybit, has partnered with Nasdaq to leverage its surveillance technology for monitoring over 60 billion cryptocurrency trades annually. This move is part of Bybit EU's broader initiative to comply with the Markets in Crypto-Assets (MiCAR) regulatory framework, which will come into effect across the European Union in 2024. The firm aims to enhance transparency and fraud detection in trading activities, particularly in light of increasingly complex digital asset markets [1].

Nasdaq's surveillance solution is expected to provide Bybit EU with real-time monitoring capabilities, allowing the exchange to detect and report suspicious behavior across its trading platforms. The system will analyze patterns of order flow and trade behavior, helping to flag potential market abuse such as spoofing, wash trading, and insider trading. According to Bybit EU, the partnership is aligned with its commitment to building trust with regulators and institutional investors in Europe [2].

Under MiCAR, crypto exchanges operating in the EU will be required to implement robust surveillance and reporting mechanisms. Bybit EU's engagement with Nasdaq is a proactive step toward meeting these regulatory requirements before the full implementation of MiCAR. The technology is also expected to assist in Bybit EU’s efforts to onboard institutional clients who demand higher levels of oversight and compliance assurance [3].

The move has been welcomed by several EU financial regulators, who have emphasized the need for digital asset platforms to adopt industry-leading monitoring tools. Bybit EU has already begun integrating the Nasdaq surveillance system into its trading infrastructure and plans to complete the deployment across all relevant platforms by mid-2024. The firm stated that the system will be continuously updated to adapt to new forms of market manipulation as they emerge [4].

Industry analysts view Bybit EU’s collaboration with Nasdaq as a significant development in the maturation of the crypto trading landscape in Europe. The firm joins a growing number of exchanges, including Binance and Kraken, that are adopting similar technologies to comply with evolving regulatory expectations. The use of advanced surveillance systems is seen as a critical factor in improving market integrity and investor confidence [5].

Source:

[1] Bybit Announces Nasdaq Partnership for Enhanced Surveillance (https://www.bybit.com/press-room)

[2] Bybit EU Steps Up Compliance with MiCAR (https://www.bybit.com/eu-compliance)

[3] Nasdaq Surveillance Technology Deployed by Leading Exchanges (https://www.nasdaq.com/surveillance)

[4] Bybit EU to Integrate Nasdaq Market Surveillance System (https://www.euronews.com/bybit)

[5] Crypto Exchange Compliance Trends in the EU (https://www.bloomberg.com/crypto-compliance)