What’s Next for Crypto Market-Making? CLS Global Weighs In

As the digital asset industry faces increasing regulatory scrutiny, crypto market-making firm CLS Global is turning compliance into an opportunity rather than a burden. The company remains focused on strengthening its operations, enhancing its services, and maintaining transparency to meet the needs of institutional and retail clients. 

In a recent exclusive interview with BeInCrypto, CLS Global CEO Filipp Veselov shared his thoughts on how this moment marks an inflection point for both CLS Global and the broader digital asset industry.

As market conditions shift, CLS Global continues to refine its approach to liquidity provision and trading efficiency, adapting to the shifting demands of the industry. The increasing focus on oversight has prompted firms across the market-making sector to reevaluate their practices and ensure they are aligned with global standards.

“Market makers now face a new reality where regulatory compliance is as crucial as trading technology,” Veselov said. “We’re seeing this materialize in two key areas. First, in how liquidity is structured across different venues, with increasing emphasis on regulated trading environments; and second, through enhanced requirements for capital reserves, risk management, and reporting systems.”

CLS Global has focused on expanding its market-making services and optimizing its trading infrastructure to ensure continued efficiency and reliability. Veselov emphasizes that stability and adaptability are critical for firms looking to maintain strong business operations in a fast-changing market.

“Early regulatory engagement is crucial in an industry where the rules are still being shaped. Market participants who maintain proactive dialogue with regulators can help shape practical frameworks that work for both oversight purposes and market efficiency. Those who take a wait-and-see approach often find themselves rushing to adapt to requirements that could impact their operations,” he affirmed.

A proactive approach to regulatory alignment can provide tangible benefits for market participants. It ensures uninterrupted access to trading while also allowing 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,” he assured.

As CLS Global strengthens its compliance infrastructure, it is also leveraging technology to improve efficiency and oversight. According to Veselov, the firm is developing an automated compliance system to consolidate all its regulatory monitoring into a comprehensive dashboard.

“This will replace the need to track multiple applications and spreadsheets, providing real-time visibility across our operations,” he said.

He also noted that client onboarding and KYC verification are key focus areas for CLS Global’s compliance-driven innovations. The firm is actively exploring advanced KYC solutions that can more efficiently verify client identity and eligibility while maintaining the highest security standards. This automation is expected to significantly streamline the onboarding process and ensure full regulatory compliance.

Beyond regulatory compliance, CLS Global is focused on ensuring liquidity stability under all market conditions. The firm has built a comprehensive risk management framework that allows it to operate seamlessly, even during periods of heightened volatility. Veselov pointed to real-world examples that demonstrate how CLS Global ensures 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,” he revealed.

This risk-first approach was tested during the significant market events of February 2, 2025, when extreme liquidations disrupted the industry. According to Veselov, CLS Global’s advanced stress-testing protocols and algorithmic adjustments ensured that the firm remained stable while others struggled.

“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 is another priority for CLS Global, particularly as institutional participants seek greater clarity into how market makers operate. Veselov noted that the firm has taken steps to reinforce trust by maintaining regular communication with clients, actively engaging with its partners, and enhancing public messaging about market conditions and operational standards.

With its deep involvement in compliance, technology, and market stability, CLS Global is closely watching how market-making is shifting as regulatory frameworks take shape. Looking ahead, Veselov identified three major trends that are shaping the next phase of market-making in digital assets.

First, he pointed to the increasing regulatory focus on decentralized exchanges, particularly platforms like Uniswap, as authorities push for greater transparency in DeFi. He also highlighted the growing demand for high-frequency trading strategies, with automated and algorithmic trading becoming more dominant as the market continues to evolve. Lastly, he discussed 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.