CLS Global maintains tight non-US policy amid regulatory scrutiny, improving compliance and fostering dialogue with US authorities.
In response to recent U.S. regulatory actions involving cryptocurrency firms, including CLS Global, the company has affirmed its position and pledged full cooperation with regulatory bodies.
As investigations proceed by the U.S. Securities and Exchange Commission (SEC), Department of Justice (DOJ), and Federal Bureau of Investigation (FBI), CLS Global is taking measures to address regulatory concerns and reinforce its compliance framework.
CLS Global’s Dedication to a Non-U.S. Market Focus
CLS Global has reiterated its firm policy of avoiding the U.S. market, specifically refraining from any dealings with U.S. citizens, entities, or clients.
“Our company has always aimed to maintain a policy that prohibits engagement with U.S. clients, entities, or users,” stated CLS Global CEO Filipp Veselov, who added that CLS Global takes compliance very seriously and strives to keep its operations outside the U.S. regulatory scope, which some regard as excessive.
Although it stands by its non-U.S. policy, CLS Global expressed openness to reinforcing compliance efforts.
The company committed to constructive dialogue with regulators to ensure alignment with industry standards and expectations.
Steps Toward Transparent Engagement
In light of ongoing regulatory scrutiny, CLS Global has outlined plans to foster transparency and cooperation, including contacting U.S. authorities to clarify its operations.
CLS Global has already reached out to U.S. regulators, hoping to address any misunderstandings.
“We are committed to engaging in constructive discussions with regulatory authorities to address any concerns,” Veselov said, emphasizing CLS Global’s willingness to collaborate with U.S. authorities to ensure legal alignment.
The current investigation into CLS Global occurs amid heightened scrutiny of SEC leadership under Gary Gensler, whose term expires in June 2025.
However, there is speculation he may leave earlier, depending on the outcome of the U.S. presidential election.
Coinbase CEO Brian Armstrong recently urged the next SEC chief to formally apologize to American crypto investors for what he described as “frivolous” lawsuits and to withdraw these actions against crypto firms.
Strengthening Compliance Practices
In response to recent developments, CLS Global is conducting an extensive review of its client agreements to ensure they align with the company’s policy of non-engagement with U.S. clients and entities.
This review reinforces its position against providing services to U.S.-based individuals or companies.
Furthermore, CLS Global is evaluating its partnerships with cryptocurrency exchanges to confirm their compliance with Know Your Customer (KYC) and anti-money laundering (AML) standards.
This assessment aims to mitigate regulatory risks and reflects the company’s commitment to upholding legal obligations.
By prioritizing KYC and AML protocols, CLS Global is working to prevent unauthorized access to its services by U.S. users.
