Article 72 Identification, prevention, management and disclosure of conflicts of interest

1. themselves and:

   1. their shareholders or members;

   2. any person directly or indirectly linked to the crypto-asset service providersmeans a legal person or other undertaking whose occupation or business is the provision of one or more crypto-asset services to clients on a professional basis, and that is allowed to provide crypto-asset services in accordance with Article 59; or their shareholders or members by control;

   3. members of their management bodymeans the body or bodies of an issuer, offeror or person seeking admission to trading, or of a crypto-asset service provider, which are appointed in accordance with national law, which are empowered to set the entity’s strategy, objectives and overall direction, and which oversee and monitor management decision-making in the entity and include the persons who effectively direct the business of the entity;;

   4. their employees; or

   5. their clientsmeans any natural or legal person to whom a crypto-asset service provider provides crypto-asset services;; or

2. two or more clientsmeans any natural or legal person to whom a crypto-asset service provider provides crypto-asset services; whose mutual interests conflict.

Crypto-asset service providersmeans a legal person or other undertaking whose occupation or business is the provision of one or more crypto-asset services to clients on a professional basis, and that is allowed to provide crypto-asset services in accordance with Article 59; shall, in a prominent place on their website, disclose to their clientsmeans any natural or legal person to whom a crypto-asset service provider provides crypto-asset services; and prospective clientsmeans any natural or legal person to whom a crypto-asset service provider provides crypto-asset services; the general nature and sources of conflicts of interest referred to in paragraph 1 and the steps taken to mitigate them.

The disclosure referred to in paragraph 2 shall be made in an electronic format and shall include sufficient detail, taking into account the nature of each clientmeans any natural or legal person to whom a crypto-asset service provider provides crypto-asset services;, in order to enable each clientmeans any natural or legal person to whom a crypto-asset service provider provides crypto-asset services; to take an informed decision about the crypto-asset servicemeans any of the following services and activities relating to any crypto-asset:providing custody and administration of crypto-assets on behalf of clients;operation of a trading platform for crypto-assets;exchange of crypto-assets for funds;exchange of crypto-assets for other crypto-assets;execution of orders for crypto-assets on behalf of clients;placing of crypto-assets;reception and transmission of orders for crypto-assets on behalf of clients;providing advice on crypto-assets;providing portfolio management on crypto-assets;providing transfer services for crypto-assets on behalf of clients; in the context of which the conflicts of interest arise.

Crypto-asset service providersmeans a legal person or other undertaking whose occupation or business is the provision of one or more crypto-asset services to clients on a professional basis, and that is allowed to provide crypto-asset services in accordance with Article 59; shall assess and, at least annually, review their policy on conflicts of interest and take all appropriate measures to address any deficiencies in that respect.

1. the requirements for the policies and procedures referred to in paragraph 1, taking into account the scale, the nature and the range of crypto-asset servicesmeans any of the following services and activities relating to any crypto-asset:providing custody and administration of crypto-assets on behalf of clients;operation of a trading platform for crypto-assets;exchange of crypto-assets for funds;exchange of crypto-assets for other crypto-assets;execution of orders for crypto-assets on behalf of clients;placing of crypto-assets;reception and transmission of orders for crypto-assets on behalf of clients;providing advice on crypto-assets;providing portfolio management on crypto-assets;providing transfer services for crypto-assets on behalf of clients; provided;

2. the details and methodology for the content of the disclosure referred to in paragraph 2.

ESMA shall submit the draft regulatory technical standards referred to in the first subparagraph to the Commission by 30 June 2024.

Power is delegated to the Commission to supplement this Regulation by adopting the regulatory technical standards referred to in the first subparagraph of this paragraph in accordance with Articles 10 to 14 of Regulation (EU) No 1095/2010.