Bitfinex, one of the world’s largest cryptocurrency exchanges by trading volume, has partnered with a market surveillance company Irisium to try and stamp out market manipulation on its platform, Business Insider reported.
The company will identify and investigate manipulative behaviours and suspicious trading practices on the exchange.
"To meet the complex needs of an evolving digital asset class and to protect our sophisticated participants, Bitfinex requires an agile surveillance system built on the latest technology,” Bitfinex CTO Paolo Ardoino said in a statement on Wednesday.
"Together with our experienced team, the Irisium platform will provide the surveillance needed to protect our participants and our venue from trading abuses,” he added.
Irisium CEO Alastair Goodwin said they are at a tipping point in the development of the digital currency marketplace.
“As professional traders and sophisticated investors enter the market, exchanges need to deploy modern surveillance tools that can detect abusive trading practices and protect their customers," Goodwin said.
The deal comes after reports on the prevalence of market manipulation and scams in crypto secondary markets.