Crypto trading platforms operate in the Wild West. However, governments through their respective agencies such as the US CFTC, IRA, and the Bank of England, the SEC, and more are increasingly enacting policies to tame the spiraling problem.
In the same perspective, the industry is also innovating solutions for checking the problem. One of the firms leading the initiatives is the Blockchain Transparency Institute (BTI). What this platform does is to study and report on the accuracy and cleanliness of data on trading volumes on Crypto marketplaces.
In the most recent data published last week, the BTI lusts show that Kraken and Coinbase have the most accurate market data. This means that the platforms report actual data with law margins of deviance from reality.
BTI Is Transforming Market Surveillance
Surveillance in Crypto trading platforms had largely taken the backstage as Blockchain experts focused on security and marketing. Nevertheless, the Blockchain Transparency Institute (BTI) is transforming this critical area and is ushering a market-driven solution for enhancing transparency in the market.
From the findings, Kraken and Coinbase trading volumes for different Crypto pairs are more actual and cleaner than their counterparts. This is a key point that could enable players in the industry to make fundamental investments decisions with precision.
The Findings Show That Wash Trading Is Plummeting
Amidst the report of the cleanest Crypto trading platforms, one of the most outstanding parts of the report is that Crypto washing is on a downward trend.
It is vital to note that Crypto washing is the manipulation of sell and buy orders where the two are added to constitute the total volume. In such a scenario, the volume of balloons and investors are misled to believe that market activity is at an all-time high.
Nevertheless, BTI observes that the manipulation has fallen by 35.7% in the five consecutive reports for August 2018 to September 2019 period.
The Importance Of BTI Research
BTI shares the findings with the Top 40 Crypto exchanges which then employ mechanisms of detecting accounts that wash Crypto volumes. These accounts are then shut down and the market is cleaned eventually.
Besides Kraken and Coinbase, other clean exchanges include Binance Poloniex, Upbit, and Huobi. On the other hand, platforms that are yet to curb market manipulation include OKEx and Bibox.
Further, the findings indicate that countries with the lowest prevalence of Crypto washing are the USA and Japan. This is because these countries have stringent laws that impose tough penalties on individuals caught flouting the rules.
Conclusively, policymakers and industry players can join hands and enact regulatory frameworks that root out Crypto washing.
Meanwhile, BTI initiative to offer Virtual Assets market intelligence could enable Crypto traders to understand market pairs for optimal investments.