Blockchain-powered trading enables digital assets and the prospect of more accessible and efficient capital markets, liquidity in formerly illiquid assets, and numerous other advantages. Beyond the prospect of new financial products, digital assets also provide a much-needed opportunity to drive the financial industry, which too often still exhibits legacy technology, culture and standards, into the 21st century.
At a time when the number of US IPOs is lower than in the 1970s, it’s no surprise Wall Street is keen on adopting this new asset class and unveiling its potential. Learn More
If the potential is so great, what’s holding back the mass adoption of digital assets? One of the major concerns for institutional investors is market integrity. With as much as 70%-90% of the volume traded in crypto exchanges driven by trade manipulation, and markets rife with fraud, the risk of regulatory fines, reputational damage and client protection is still too high.
Solidus is among the companies leading the effort for safer, more transparent markets. Learn more
As crypto markets mature and expand, governments are trying to do their part and provide regulatory frameworks that would encourage better behavior and safer markets. Globally, legislation, regulation and enforcement is intensifying by the week, with new rules introduced, as well existing rules utilized to sanction bad actors. If in 2017, the crypto industry seemed like a Wild West with no supervision, in 2018 regulators made it clear that the state won’t last. In the US alone, authorities inflicted at least $2.3 million in fines on digital asset firms, and made it clear scrutiny will only increase in 2019.
For digital asset service providers, the need to be proactive and work towards compliance is more pressing than ever. Learn more
The more complex a trading system is, the more opportunities exist for manipulation. Traditional trading is very complex as it is. Blockchain and its smart contracts, oracles, and distributed consensus mechanisms offer enormous value, but also add numerous new layers of complexity – However, it also introduces more complex trading workflows, data management challenges, and various other differentiators making manipulation-detection more difficult. Digital assets are powered by new cutting-edge technology, and they deserve infrastructure that’s also cutting edge.
In the constantly evolving blockchain-based trading realm, there are plenty of unknown unknowns – what manipulation will look like in two, five, and ten years can be completely different from what we know in traditional trading and even from today’s digital asset trading. Financial service providers can no longer rely on systems that are only good at responding to known threats – Solidus’ solutions are forward-thinking, and since they rely on machine learning engines, can identify anomalies, not just known threats, and provide real-time alerts on new concerns
Beyond new typologies and crypto-specific threats, digital asset trading also presents a new ecosystem. 18-decimal trading, markets that never close, easily generated wallets and investment gateways all require special accommodation for surveillance systems. In other words, digital asset trading requires infrastructure that speaks crypto natively, not as a second language, to reduce
Faced by these challenges, traditional, decades-old surveillance systems are ineffective, resulting in high false positive rates, inflated compliance overhead, unreliable threat detection and burdensome workflows. Just like you can’t teach an old dog new tricks, you can’t use 20th-century solutions to ameliorate 21st-century problems.
In fines and disgorgement, at least, enforced by regulators against digital asset businesses in 2018. Scrutiny is expected to increase in 2019.
Times the word manipulation appears in the SEC’s rejection of a Bitcoin-ETF application, a 90-page document. The word surveillance appears 120 times.
Average reduction in false positives, reported by clients, when switching from a legacy solution to Solidus’ platform. And constantly improving.
Solidus’ Machine Learning powered surveillance and monitoring hub is designed uniquely for the challenges of digital assets and in order to make the lives of compliance teams easier. We already help crypto exchanges, broker dealers, market makers and other financial service provider reduce costs, protect their reputation and work towards compliance. Get in touch today for a product demoLearn More
SEC’s Hester Peirce stated that cryptocurrencies prove to be important “transaction mechanisms” and their “store of value” is...Read Full Article
SEC Commissioner Hester Peirce speak about the views of U.S. Securities and Exchange Commission (SEC) on cryptocurrencies, how...Read Full Article
The U.S. Securities and Exchange Commission (SEC) regularly draws the ire of crypto proponents who are frustrated at...Read Full Article
Pundits and experts agree: For crypto, 2020 will be a year of increased regulatory clarity — and enhanced compliance requirements. In this post, we detail 7 ways compliance solutions tailored for digital assets save crypto firms time, money and risk In November, the Hong Kong Securities and Futures Commission announced a highly anticipated licensing regime for virtual currency exchanges. It joined Malaysia, France and many...Read more
The Digital Asset Compliance & Market Integrity Summit Keynoted by SEC Commissioner Hester M. Peirce and featuring speakers from Coinbase, Gemini, Circle, GDF, Tagomi, ErisX and the Chamber of Digital Commerce among others. Join us September 26, 2019, 8am-4pm Hosted by Hogan Lovells | dacomsummit.soliduslabs.com Tickets are selling out - click to save your seat today Announcing DACOM Summit's Agenda You already...Read more
Coindesk's Institutional Crypto expert Noelle Acheson hosted Solidus Founder & CEO Asaf Meir for an hour-long discussion of the unique compliance and market manipulation challenges presented by digital assets, and how crypto-native solutions can help address them. Listen below! Enjoyed it? To learn more about Solidus and to schedule a live demo, click the "schedule a demo" button at the...Read more
All the crypto compliance news you need to know from the past few weeks Top Headlines: FATF’s guidelines were officially adopted by G20 nations, leading to intensified discussion of regulation and compliance in the crypto space. For the first time, the U.S. SEC approved a security token offering under regulation A+. The approval of Blockstack's $28 million STO means it will...Read more
From day one, we knew that our mission — combating crypto manipulation and creating safer, more fair, more transparent and more credible crypto markets — is not a one person, or one company, job. Therefore, joining the Global Digital Finance community as Founding Members and Advisory Board Members was a natural fit for Solidus. Established as an industry membership body that promotes the adoption of best...Read more
All the crypto news compliance professionals need to know. This month's highlights: SEC Chairman Jay Clayton again calls for better market surveillance and reduced manipulation before the agency can approve a crypto-ETF; A study by The Block raises concerns that 86% of volume in 48 exchanges is potentially wash trading; 94% of surveyed US, UK and Canadian endowment funds are actively...Read more
As demand increases for trade surveillance tailored for digital assets, Solidus is expanding its customer base both domestically and internationally Tackling trade manipulation in blockchain-based trading is not a one-company job, and Solidus is constantly forming strategic partnerships with firms offering complementary services We're continuing to grow and looking to hire for various tech and business positions Everything you need to know from...Read more
Everything you need to know from the past few weeks: In the US, the SEC announces digital assets will be the focus of its compliance inspections in 2019. The EU Banking Authority calls for regulatory consistency across the Union. And in Asia — a domino effect of licensing for cryptoasset exchanges. United States The SEC’s Office of Compliance Inspections and Examinations released...Read more
Everything you need to know from the past few weeks: Globally, governments tighten definitions of digital assets to prevent legal confusion; SEC enforcement action leads to $2.7 million fine; Crypto users doubled in 2018; Trump’s new Chief of stuff is pro-crypto Before diving into developments from the digital asset space, check out Solidus CEO Asaf Meir’s op-ed in Finance Magnates: The...Read more
The SEC has repeatedly cited the lack of comprehensive trade surveillance in rejecting Bitcoin-ETF applications. Some exchanges instituted traditional solutions and were denied nonetheless. Here’s one explanation why With as up as 70% of trade driven by manipulation, it no surprise the SEC is reluctant to approve a crypto ETF SEC Chairman Jay Clayton spoke at the Consensus Invest Conference two weeks ago...Read more
Solidus in London: Discussing Digital Asset Market Surveillance and Regulation Challenges alongside Major Regulators Solidus CEO, Asaf Meir, joined industry leaders (like Ripple, Global Digital Finance and Coinfloor) and major UK and EU regulators (like Bank of England, HM Treasury, the FCA, FSB and the French AMF) at the Regulation of Cryptocurrencies conference in London last week. The one-day event offered honest discussion between regulators — who are following...Read more
Key developments from the past week, for digital asset practitioners thinking blockchain beyond the buzz. This week: The SEC enforces — for the first time — against an unregulated digital asset exchange and releases its annual enforcement report; German authorities partially cease the operations of a UK-based crypto fund; And — digital asset-friendly governors elected in California and Colorado Action and Data from the SEC Last week, for the...Read more
For a year now, Solidus has been working to tackle cryptoasset trading manipulation. Here, I offer a brief overview of the landscape, and present the principles guiding our vision for safer crypto markets “What would you say is the biggest problem facing crypto markets today?” That’s what two journalists, both from major financial news outlets, recently asked me. I must admit — I...Read more
About a year ago I left a great job and ventured off to found Solidus Labs. Admittedly, as a first time CEO, there have been many ups and downs. Even though I’ve led teams in the past, I was humbled by the amount of learning and growth I’ve experienced. Here we are a year later, and people in my network...Read more
Blockchain compliance means different things in different contexts. Here’s a basic guide to some of the key issues comprising the compliance conversation. Did we miss something? Let us know If you follow developments in the blockchain and crypto spaces, you must have noticed the words “blockchain” and “compliance” appearing side by side more often. That’s a little surprising. After all, many see blockchain...Read more
A healthy blockchain ecosystem and a safer crypto trading environment needs market surveillance standards. Instead of waiting for regulation, crypto innovators, broker dealers, hedge funds and exchanges should lead by example and integrate surveillance into their systems. As Lucrative as crypto and blockchain-based assets already are — and will increasingly become — fraud, volatility and regulatory uncertainty still make them too risky for institutional investors...Read more
Light on buzz, heavy on substance, free of ICO pitches and more dedicated to learning and conversation than to selling and raising — the Security Token Summit in New York this past Monday was a unique event in the realm of Blockchain. Most importantly, the organizers at Security Token Academymanaged to bring together a focused group of individuals dedicated to tackling some of blockchain’s — and the...Read more
The Zimbabwean economy broke world records of hyperinflation twice in the past decade Blockchain is more often than not a realm of techy buzzwords, explosive futurisms and grandiose visions. While that’s natural for a groundbreaking technology, at Solidus we always remind ourselves, our clients and partners to try and think BBB: Blockchain Beyond the Buzz. Well, I’m writing because last week...Read more