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Circle Focused on Fighting Market Manipulation Through Market Monitoring Tools

Circle, the Boston based Fintech startup has recently announced its plans to fight various market manipulation practices like the pump and dump scheme, wash trading and market manipulation by whales through market monitoring tools. The startup has received support from some of the most noted names in the financial sector, including Goldman Sachs.

Circle recently released a press release, announcing its partnership with Israeli software firm Nice Actimize. Nice is an Israeli software firm which expertise in creating financial tools to help its clients in monitoring financial crimes, risk, and compliance areas.

The circle would be using the  Nice Actimize’s Cloud Markets Surveillance (CMS) tool on their own over the counter trading desk to check potential market manipulation tactics. Last year Circle’s trading desk was responsible for handling $24 billion worth of crypto assets. It also acquired the Poloniex trading exchange last year.

Robert Bench, the head of regulatory counsel and chief compliance officer was quoted,

“The circle has adopted a strong position on policy and crypto-related regulatory issues that focus on the safety of our customers and investors. Adapting innovative technology solutions, such as the financial markets compliance solutions from NICE Actimize, to meeting the potential needs of regulators and protecting our assets brings this commitment full circle”

The move came in after various reports of scammers using social media and chat platforms like Telegram to manipulate the market were reported last year. Scammers used to quote inflated prices with low liquidity to create dumping opportunities.

The Circle is  not the First Startup Focused on Containing Market Manipulation

Circle’s novel approach to containing the ever-growing market manipulations are quite appreciable, however, it is not the first firm to take a step in the direction. Earlier Nasdaq the world’s second-largest stock exchange was set to provide seven different tools to monitor various aspects of market trends and try to contain the growing concerns of market manipulation.

Market manipulation is one of the biggest problems in the traditional stock market as well as the crypto trade market. The effect is more noticeable in the crypto space since the crypto market suffers from heavy price volatility, and lack of technical knowledge among the public also add to the cause.

Hopefully, with startups like Circle, we would be able to contain or at least find a pattern among these manipulation tricks. Technology might be our only reliance when all other means seems to have failed to contain the problem.