CLS Global Pledges Cooperation As US SEC, FBI, DOJ Probe Crypto Operations

In response to recent U.S. regulatory actions targeting cryptocurrency firms, including CLS Global, the company has clarified its stance and pledged full cooperation with authorities.

With investigations underway by the U.S. Securities and Exchange Commission (SEC), the Department of Justice (DOJ), and the Federal Bureau of Investigation (FBI), CLS Global has taken steps to address the concerns raised and enhance its compliance framework.

CLS Global’s Commitment to a Strict Non-U.S. Market Policy

CLS Global has emphasized that it has consistently maintained a strict policy of avoiding engagement with the U.S. market. According to the company, this policy extends to refraining from business interactions 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,” said CLS Global CEO Filipp Veselov. 

He added that the company takes compliance obligations seriously and has worked to ensure its operations remain distinct from U.S. regulatory reach which many have deemed as abuse of power.

In addition, CLS Global stated that, while it stands by this non-U.S. policy, it remains open to identifying areas where compliance can be strengthened. The company expressed a commitment to constructive dialogue with regulatory authorities to ensure adherence to evolving industry standards and expectations.

Steps Towards Constructive Dialogue

In light of the ongoing regulatory investigations, CLS Global has outlined steps aimed at fostering transparency and cooperation. These steps include establishing communication with U.S. authorities, aiming for a clear and open discussion on the company’s operations. CLS Global stated that it has already reached out to U.S. regulators to address any potential misunderstandings.

The company expressed confidence that transparent dialogue will facilitate a resolution to the issues at hand. “We are committed to engaging in constructive discussions with regulatory authorities to address any concerns,” Veselov explained. Moreover, the CLS Global aims to work closely with U.S. authorities to ensure its operations align with applicable legal standards.

Concurrently, the current probe into CLS Global comes at a time of intense scrutiny of the SEC’s leadership under Gary Gensler, whose term expires in June 2025. However, there is speculation that Gensler may exit earlier depending on the outcome of the U.S. presidential election. Coinbase CEO Brian Armstrong has called for the next SEC chief to formally apologize to American crypto investors for what he termed as “frivolous” lawsuits and to withdraw these actions against crypto firms.

Enhancing Compliance Measures

In response to recent developments, CLS Global is conducting a comprehensive review of its client agreements to ensure these contracts reflect the company’s compliance stance on U.S. involvement. This review is intended to provide clear communication regarding the prohibition of services to U.S. clients and entities. 

In addition, CLS Global also confirmed that it is assessing its partnerships with cryptocurrency exchanges to verify their adherence to Know Your Customer (KYC) and anti-money laundering (AML) protocols.

The company’s evaluation of these partnerships is intended to minimize regulatory risks and uphold its commitment to legal compliance. Subsequently, the CLS Global’s emphasis on KYC and AML protocols underscores its dedication to preventing unauthorized access to its services by U.S. individuals or entities.

✓ Share:

Kelvin Munene Murithi

Kelvin is a distinguished writer with expertise in crypto and finance, holding a Bachelor’s degree in Actuarial Science. Known for his incisive analysis and insightful content, he possesses a strong command of English and excels in conducting thorough research and delivering timely cryptocurrency market updates.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.