““The recent approval of the Spot Bitcoin ETF has piqued the market’s interest. As a result of price volatility, the trading volumes for crypto derivatives have gone up substantially. HALO, with its advanced technology and crypto-native detection architecture, will enable BitMEX to smoothly and safely scale trade surveillance across its increased trading volumes and provide the necessary safeguards for new product launches.”
Crypto exchange operator BitMEX has expanded its partnership with RegTech firm Solidus Labs have announced an expansion of their partnership to enhance cross-market surveillance on the trading platform.
Built on an initial focus on transaction monitoring since October 2022, the relationship now aims to integrate Solidus’ HALO platform into BitMEX. HALO, a crypto market integrity hub, will improve BitMEX’s ability to detect potential abusive behaviors in its Spot and Derivatives markets.
Solidus’ HALO platform is designed to monitor a variety of markets for unusual or suspicious trading activity using machine learning-powered surveillance detection models. This extended partnership between BitMEX and Solidus Labs represents a significant step towards enhancing the safety and integrity of crypto trading, benefiting both platforms and their users by offering more robust surveillance and detection capabilities.
HALO is currently used to monitor over 250 million events and $16 trillion in on- and off-chain trading volume per day across more than 150 markets, protecting more than 25 million individual and institutional investors. EDX Markets recently tapped HALO as its transaction monitoring solution.
Smoothly and safely scale trade surveillance across increased trading volumes
Julian Tehan, Chief Compliance Officer of BitMEX, said: “Our commitment to providing a secure and compliant trading platform remains unwavering. The extension of our partnership with Solidus Labs reflects this commitment as we continue investing in our compliance program and protecting the integrity of our markets. The further enhancement of our existing trade surveillance capabilities will serve to safeguard our platform, prevent market abuse, protect our customers, and help us meet evolving regulatory expectations.”
Asaf Meir, Founder and Chief Executive of Solidus Labs, added: “The recent approval of the Spot Bitcoin ETF has piqued the market’s interest. As a result of price volatility, the trading volumes for crypto derivatives have gone up substantially. HALO, with its advanced technology and crypto-native detection architecture, will enable BitMEX to smoothly and safely scale trade surveillance across its increased trading volumes and provide the necessary safeguards for new product launches. We are proud to stand alongside BitMEX as a partner, providing cutting-edge tools and insights to navigate these exciting developments and contribute to the maturation of the crypto market.”
HALO addresses “triple T”
It was in 2022 that Solidus Labs first introduced HALO to the market. The platform addresses crypto-specific challenges like new market structures, volatility, volumes, data types, decentralized services, trading dynamics, crypto-native market abuse typologies – and evolving business and regulatory demands.
The platform addresses the “triple T” pillars of market integrity in the crypto and DeFi space – trade surveillance, transaction monitoring, and threat intelligence, with the following modules:
Trade Surveillance: HALO’s comprehensive market surveillance tools ensure market integrity by benchmarking abnormal crypto orders and execution patterns against the market norm, to alert businesses and networks on potential breaches of trading rules or unusual market volatility. HALO users can easily customize detection model sensitivity and backtest against real data in order to meet the needs of quickly evolving regulatory and compliance landscapes.
Transaction monitoring: HALO’s continuous real-time monitoring of crypto and fiat transactions offers unprecedented blockchain-native capabilities and enables detecting, investigating and reporting suspicious crypto deposits and withdrawals for anti-money laundering (AML), sanctions, and financial risk compliance.
Threat Intelligence: Relying on a built-in onboarding verification tool, powerful integrations and crypto-native infrastructure, HALO’s Universal Client Risk Profile aggregates risk across the entire investment journey and multiple markets – from onboarding to trading, post-trade and everything in between. Synthesizing numerous signals into a single threat intelligence hub, HALO surgically surfaces overlooked threats in crypto and DeFi services, enabling businesses to act upon them in real time.
