Institutional-grade technology will enhance the integrity of the world’s second-largest cryptocurrency exchange

Surveillance platform combines advanced pattern analytics with comprehensive market data to meet MiCAR obligations

Bybit, the second-largest cryptocurrency exchange by trading volume in the world, announced it has adopted Nasdaq’s Market Surveillance platform to reinforce the company’s ability to prevent and detect market abuse across its European markets.

Operating under the company’s Bybit EU entity, the technology helps ensure ongoing compliance with the EU’s Markets in Crypto-Assets Regulation (MiCAR), which compels digital asset exchanges to implement rigorous surveillance and reporting requirements. The modular and flexible architecture of Nasdaq’s surveillance platform will support Bybit EU’s ongoing expansion, enabling rapid compliance with local regulatory obligations.

“This agreement demonstrates our commitment to providing secure, transparent, and fully compliant digital asset trading as we continue to grow our business,” said Mazurka Zeng, Managing Director and CEO of Bybit EU. “We welcome the opportunity to partner with Nasdaq, whose innovative technology and unparalleled surveillance expertise, help safeguard the resilience and integrity of our marketplace.”

“MiCAR is driving a step change in investor protection across digital asset markets, but many compliance programs are still failing to match the level of investor protection offered by traditional markets,” added Ed Probst, Head of Regulatory Technology at Nasdaq. “We welcome the opportunity to partner with Bybit EU, who recognize the benefits of incorporating comprehensive market data into its surveillance framework to protect against critical threat scenarios. We look forward to building on this relationship and remain committed to advancing trust and resilience across the digital asset ecosystem.”

Building trust in digital markets

Nasdaq Market Surveillance is the most widely used market surveillance technology globally, serving over 50 exchanges and 20 international regulators, helping to maintain the integrity of marketplaces around the world.  The platform incorporates tailored features and alerts for crypto markets alongside sophisticated algorithms developed over 30 years of experience. It also benefits from Nasdaq’s ongoing investment in both R&D and the underlying technology infrastructure to define industry best practice and maintain compliance with evolving global regulations.

The platform offers access to comprehensive order book data to support real-time decision-making, which is emerging as a critical frontier to prevent and detect market abuse in crypto markets. While certain behavioral indicators can signal potential manipulation, prevention requires exchanges to combine pattern-recognition algorithms with comprehensive market data, overlaid with alerts tailored to specific mechanics of each market. It helps significantly reduce false positives and detect cross-market manipulation, timing-based violations, layering & spoofing, liquidity exploitation and currency & commodity manipulation. Additional functionality includes:

• Real-time, 24/7 monitoring of over 60 billion crypto transactions per day
• Integrated control framework with data quality reporting, audit, and case management
• Ability to monitor currency pairs trading and fractional volumes trading
• Availability of all historical market data including full-depth order book visual replay and reconstruction
• SaaS-deployed to enable regular product upgrades and enhancements

Around the world, Nasdaq’s technology is used by 97% of global systematically important banks, half of the world’s top 25 stock exchanges, 35 central banks and regulatory authorities, and 3,800+ clients across the financial services industry. As a scaled platform partner, Nasdaq draws on deep industry experience, technology expertise, and cloud managed service experience to help financial services companies solve their toughest operational challenges while advancing industrywide modernization.

Source: Bybit