CLS Global: Turning Crypto Compliance into a Competitive Edge
As the digital asset industry faces mounting regulatory pressure, crypto market-making firm CLS Global is positioning compliance as a strategic advantage rather than a burden. In a recent interview, CLS Global CEO Filipp Veselov shed light on the company’s proactive approach to regulatory changes and its vision for the future of market-making.
CLS Global is focused on fortifying its operations, improving services, and maintaining transparency to meet the needs of both institutional and retail clients. Veselov views this moment as a pivotal point for both CLS Global and the broader digital asset sector. The company has been refining its approach to liquidity provision and trading efficiency.
Regulatory Engagement: A Proactive Strategy
The increasing emphasis on oversight compels market-making firms to reevaluate their practices and meet global standards. “Market makers now face a new reality where regulatory compliance is as crucial as trading technology,” Veselov said.
He highlighted two key areas where this is evident:
- The structuring of liquidity across various venues, with a heightened emphasis on regulated trading environments.
- More stringent requirements for capital reserves, risk management, and reporting systems.
CLS Global has prioritized expanding its market-making services and optimizing its trading infrastructure. Veselov underscored the critical importance of stability and adaptability in a rapidly evolving market.
“Early regulatory engagement is crucial in an industry where the rules are still being shaped,” Veselov emphasized. Proactive dialogue allows market participants to contribute to practical frameworks that balance oversight and market efficiency. Those who delay often find themselves scrambling to comply with regulations that can impact their operations.
This proactive approach provides tangible benefits for market participants, ensuring uninterrupted access to trading. It also allows them to anticipate regulatory changes before they take effect.
“For our clients, this means certainty and security—they can operate with full confidence, knowing that compliance risks are mitigated and their business with us remains 100% safe,” Veselov assured.
Technology and Innovation in Compliance
CLS Global is also leveraging technology to enhance efficiency and oversight as it strengthens its compliance infrastructure. The company is developing an automated compliance system that consolidates regulatory monitoring into a comprehensive dashboard.
“This will replace the need to track multiple applications and spreadsheets, providing real-time visibility across our operations,” Veselov explained.
Client onboarding and KYC verification are key focus areas for the firm’s compliance-driven innovation. CLS Global is actively exploring advanced KYC solutions designed to streamline client verification while upholding the highest security standards. This automation aims to significantly streamline the onboarding process and ensure full regulatory compliance.
Beyond Compliance: Ensuring Liquidity Stability
In addition to regulatory compliance, CLS Global is focused on assuring liquidity stability across all market conditions. The firm has built a comprehensive risk management framework. Veselov pointed to real-world examples demonstrating liquidity consistency, even under market stress.
“We employ various strategies during different market cycles, from adjusting spreads to implementing dynamic hedging across markets and optimizing position sizing,” Veselov revealed.
This risk-first approach was tested during the extreme market events of February 2, 2025. The firm’s advanced stress-testing protocols and algorithmic adjustments ensured continued stability.
“A recent example demonstrates the effectiveness of this approach. Prior to the significant market events of February 2nd, we conducted extensive stress testing of our APIs and trading algorithms. This preparation proved invaluable when the market experienced major liquidations—while many participants faced disruptions, we maintained stable operations with minimal issues,” he said.
Transparency and the Future of Market-Making
Transparency is another priority for CLS Global. The firm has taken steps to strengthen trust by maintaining regular communication with clients, engaging with its partners, and enhancing public messaging.
Looking ahead, Veselov identified three major trends that are shaping the next phase of market-making in digital assets:
- Increased regulatory focus on decentralized exchanges, particularly platforms like Uniswap.
- The growing demand for high-frequency trading strategies, with automated and algorithmic trading becoming more dominant.
- The increasing alignment between crypto and traditional finance. “Market-making strategies are increasingly aligning with traditional stock market approaches, further integrating digital assets into global financial markets,” he concluded.
