While some countries that face large foreign reserve issues such as India, Egypt, and China have taken a draconian view to banning any form of activity in the virtual asset space for fear of a flight of capital, there have been many more “crypto-progressive” regulators such as those in Singapore, UAE, Switzerland and lately the UK who have adopted more pragmatic frameworks to the regulation of virtual assets.

It is true that many libertarian-crypto-natives still generally oppose the basis of market regulation of crypto, at FLUID we believe that regulation protects industries. It makes markets safer. It makes markets more secure. Over the coming year, we will see how regulation around how to handle crypto generally becomes more exacting, we will also begin to see a tsunami of traditional capital and liquidity entering the industry as a result of better regulation.

There is always a lot written about regulation in cryptocurrency markets, the anonymous nature of cryptocurrencies allows many commentators to unfairly paint the industry as low-trust, lacking safety and security. In reality, the opposite is true. The audit trail left by the blockchain provides an immutable trail of movements that can never be matched by the fungible fiat system. Cryptocurrency can be traced back to its origin, with every wallet, every transfer, and every movement logged within the blockchain.

The anonymous, low trust nature of cryptocurrency means we have to focus on providing a secure, safe, and trustworthy trading, custody, or asset management platform for the market. Rigorous Know Your Client, Know Your Transaction, and Anti-Money Laundering controls that are predominantly blockchain-based are the building blocks of today’s regulatory and compliance frameworks in our industry.

Compliance is More Than Just KYC…

As regulators begin to understand the intricacies of the crypto asset world, we see virtual asset exchanges start to comply with similar regulatory frameworks that are seen in the equities world. These not only include standard KYC and anti-money laundering guidelines but also include measures put in place to protect all participants from unfair and unethical manipulation practices.

You will hear us talking a lot about “Best Execution”, this is a market concept that is quite prevalent in the equities world which requires exchanges, brokers, and traders to always act in the most advantageous way for their market participants. Specifically, the guidelines state that the overarching interests of market participants must come before any commissions, fees, or soft dollar incentives earned by the broker or the matching engine. Key factors include the speed of execution, the likelihood of trade, and pricing. Failure to follow “Best Execution” guidelines can result in huge fines and expensive lawsuits by regulated firms.

FLUID Helps Market Participants Act Ethically and Compliantly

FLUID’s – smart order routing engine & liquidity aggregator, brings ultra-low latency cross-chain liquidity to the digital asset exchange space with zero cost and no counterparty risk, all while ensuring that member exchanges participate compliantly.

FLUID focuses on creating the optimum institutional liquidity aggregator by implementing a universal order book to increase transaction volumes across exchanges.

In addition to being a liquidity aggregator, FLUID is incorporating a smart order routing engine to enhance the ability of exchanges to fulfill orders. As a result, FLUID provides multiple digital asset exchanges with a larger liquidity pool to access.

Through implementation of the requisite regulatory compliance along with liquidity required for institutional investment, FLUID combines the best of decentralized and legacy finance to offer a holistic service aimed at facilitating the next generation of crypto investments.

About Fluid

FLUID is an institutional smart order routing engine and liquidity aggregator that brings high-throughput and cross-chain liquidity to the digital asset exchange space at zero cost and no counterparty risk. With every asset aimed to be tokenized in the future, FLUID is positioned to capitalize on penetrating cross markets, including spot, futures, derivatives, synthetics, STOs, and tokenized assets to provide the railways with interoperable liquidity markets.

FLUID is backed by a professional team consisting of ex Bankers of Bank of America, Merrill Lynch, Goldman Sachs, BNY Mellon, Citibank, Visa, and founders of leading regulated digital asset OTC trading desks, quantitative firms, and popular blockchain companies.