Compliance

Company features > Compliance

Overview

As a regulated firm, Flowdesk understands the importance of compliance in the crypto-finance space. We are compliant by design and are registered (Registration number: E2021-019) as a Digital Asset Service Provider with the French financial markets regulator (Autorité des Marchés Financiers, AMF) and prudential regulator (Autorité du Contrôle Prudentiel et de Résolution, ACPR) for the custody, exchange, and trade of digital assets.

Compliance ensures that we operate within the legal and regulatory framework set by international institutions, states, governments, and financial authorities. This protects our clients' assets, maintains market integrity, and reduces the risk of financial crime. Adhering to compliance standards also enhances our reputation and builds trust with clients, regulators, and other stakeholders in the industry. Ultimately, compliance helps us to achieve our business goals in a responsible and sustainable manner.

In the crypto space, market making plays a crucial role in providing liquidity and bridging the gap between buyers and sellers. However, certain practices that were once prevalent in traditional markets have made a comeback in the crypto world.

Flowdesk takes a different approach to crypto market making. Implementing Market Making as a Service (MMaaS), we only guarantee the results that are within our control, such as spread and quote size.

We employ internally developed algorithms to provide constant bid-ask spread and quote size for the duration of our service engagement (along with a dedicated trading team to step in when needed). Our approach helps to ensure the stability and liquidity of the token, but does not involve any manipulative practices like wash trading.

In contrast, unregulated players in the space may promise specific trading volumes through wash trading/spoofing/pumping and dumping which are all banned practices in traditional markets. Flowdesk stays away from such practices and focuses on providing genuine liquidity and stability to the market.

Key features

• Compliance by design: Flowdesk implements compliance by design by integrating compliance into business processes, building a culture of compliance, using automated systems, conducting regular risk assessments, and maintaining a robust security infrastructure to ensure compliance with regulations and standards and protect clients' data.

• Strict adherence to legal regulations: Flowdesk places a high priority on following all applicable regulations related to our activities. The company adopts the strictest approach while implementing the applicable regulations in each region it operates in, including FATCA (Foreign Account Tax Compliance Act) for clients in the US. We are committed to staying up to date with the latest laws and regulations, ensuring that all our business practices comply with these regulations. This helps us to avoid legal consequences and maintain the integrity of our business.

• Rigorous due diligence checks: Flowdesk conducts rigorous AML/KYC/KYT due diligence checks on all clients, partners, and suppliers in order to ensure that they comply with our standards. This includes checks for inconsistencies, the ultimate beneficial owner, source of funds, reputation, politically exposed persons, and sanctions databases. We also conduct regular internal audits to ensure that we are meeting our own high standards and to identify areas for improvement.

• Internal policies: Flowdesk has strict policies in place to prevent conflicts of interest, including Conflict of Interest, Anti-Bribery, and Market Abuse policies. These policies prioritize the interests of clients and promote ethical practices. We have procedures in place to identify and manage potential conflicts, and we ensure that all employees are aware of these policies and are trained on how to avoid conflicts of interest. By doing this, we are able to maintain the trust of our clients and the integrity of our business.

• Focus on data security: Flowdesk places a strong emphasis on data security in order to protect our clients' assets. We use the latest technology and security measures to ensure the protection of sensitive data and we regularly review and update these measures to stay ahead of potential security threats. Our commitment to data security helps us to provide our clients with the highest level of protection.

• Conservative risk management strategies: Flowdesk adopts a conservative approach to risk management. We have strict procedures in place to minimize risk and to ensure the stability of our business. We continuously monitor and assess risk, and we take a proactive approach to addressing potential risks. Our commitment to conservative risk management helps us to avoid negative consequences and to maintain the long-term stability of our business.

Key benefits of compliance

Benefit	Description
Protects clients' assets	Flowdesk prioritizes compliance to ensure secure handling and responsible management of clients' assets, demonstrating a commitment to security and trust.
Promotes industry growth	Compliance helps to promote growth and stability in the crypto space by attracting investment and confidence.
Prevents fraud and unethical practices	Strict compliance procedures reduce the risk of fraud, money laundering, and other financial crimes, maintaining market integrity.
Demonstrates corporate responsibility	Compliance demonstrates Flowdesk's commitment to ethical business practices and corporate responsibility.
Enhances reputation	Prioritizing compliance enhances Flowdesk's reputation with clients, regulators, and stakeholders.
Stays ahead of the curve	Compliance allows Flowdesk to respond to changes quickly and effectively, positioning it as a leader in the industry.
Reduces risk of financial crimes	Strict compliance procedures reduce the risk of financial crimes such as money laundering.
Attracts and retains clients	Compliance is a crucial factor in attracting and retaining clients in a sustainable fashion, especially institutional investors and corporations.