Source: OJ L, 2025/1142, 10.6.2025

Article 2 Conflicts of interest potentially detrimental to the crypto-asset service provider

Summary What does Article 2 of the RTS on CASP conflicts of interest say?

This article operationalises the conflict of interest framework required under Article 72(1) of MiCA (Regulation (EU) 2023/1114) by spelling out precisely what crypto-asset service providers must look for when identifying conflicts of interest.

It addresses two distinct angles: conflicts arising from the conduct or relationships of connected persons within the firm, and conflicts arising from external persons, bodies or entities whose interests may diverge from those of the crypto-asset service provider.

It also drills further into economic interest scenarios, particularly where key internal figures such as management body members, employees, or qualifying shareholders hold financial stakes or contractual ties with conflicting parties.

Important points:

Ensure your conflict of interest policies cover connected persons whose economic interests, personal or professional relationships, or responsibilities may compromise their objectivity — including relationships that existed within the previous 3 years.
When identifying externally conflicting parties, consider whether those parties stand to gain financially at the firm's expense, hold a divergent interest in a service outcome, or are in a business relationship with the firm and demonstrably pose a conflict risk.
Pay particular attention to management body members, employees, and qualifying shareholders who hold shares, tokens, debt instruments, or contractual arrangements with conflicting parties, as these are explicitly flagged as high-risk scenarios.

Springlex's summary of the article, a reading aid, not a substitute for the legal text.

1. The policies and procedures referred to in Article 72(1) of Regulation (EU) 2023/1114 to identify, prevent, manage and disclose conflicts of interests potentially detrimental to the crypto-asset service provider shall specify the circumstances which are capable of directly or indirectly affecting the objectivity and impartiality of the connected persons in exercising their duties and responsibilities. Such policies and procedures shall take into account, at least, situations or relationships where a connected person:
  1. has an economic interest in a person, body or entity with interests conflicting with those of the crypto-asset service provider;
  2. has a present relationship with a person, body or entity that has interests conflicting with those of the crypto-asset service provider that could be of a personal, professional or political nature or had that relationship within the previous 3 years, starting from when the assessment is made;
  3. carries out tasks or activities, or is entrusted with responsibilities, conflicting with those of the crypto-asset service provider or is hierarchically supervised by a person in charge of functions or tasks conflicting with those of the crypto-asset service provider.
1. For the purposes of identifying the persons, bodies or entities with conflicting interests to those of crypto-asset service providers, crypto-asset service providers shall take into account, at least, whether that person, body or entity:
  1. is likely to make a financial gain, or avoid a financial loss, at the expense of the crypto-asset service provider;
  2. has an interest in the outcome of a crypto-asset service provided or an activity carried out by the crypto-asset service provider, which is distinct from the crypto-asset service provider’s interest in that outcome;
  3. carries out the same business as the crypto-asset service provider or is a client, consultant, adviser, delegatee, outsourcee, service provider or other supplier (including subcontractors) of the crypto-asset service provider and there are demonstrable grounds that there may be a conflict of interests with the crypto-asset service provider.
1. For the purposes of paragraph 1, point (a), crypto-asset service providers shall take into account situations where the connected person that is a member of the management body, employee of the crypto-asset service provider or a shareholder or member that has a qualifying holding in the crypto-asset service provider:
  1. holds shares, tokens (including governance tokens), other ownership rights or membership in that person, body or entity;
  2. holds debt instruments of or has other debt arrangements with that person, body or entity;
  3. has any form of contractual arrangements related to the activities regulated under Regulation (EU) 2023/1114 with that person, body or entity.

Relevant recitals

Recital 2 Safeguarding objective and independent judgment

To ensure that the conflict of interest policies and procedures are in the best interest of the crypto-asset service providers and their clients, those policies and procedures should cover situations that may influence or affect, or that may appear to influence or affect, the ability of crypto-asset service providers or of persons connected to those crypto-asset service providers to exercise their duties or responsibilities objectively and independently, in the interest of clients, and the performance of the entity.

Recital 5 Influential personal relationships

To prevent conflict of interests detrimental to the crypto-asset service providers and its clients, conflict of interest policies and procedures should ensure the careful monitoring of situations where persons connected to the crypto-asset service provider have a personal, professional or a political relationship with another person. Such relationships have the potential to influence the objective judgment of the crypto-asset service provider and connected persons. Personal relationships should include those between relatives by blood or marriage, or social relationships not limited to a formal partnership or marriage. Political relationships should include memberships of political parties, or relationships with government or other public officials. Professional relationships should consist in relationships in a professional setting, including at work or in a business context.

Recital 8 Conflicts of interest to be taken into consideration

The potential and actual conflicts of interest to be taken into consideration by crypto-asset service providers pursuant to Article 72(1) of Regulation (EU) 2023/1114 should be those affecting, or potentially affecting, the interests of clients as well as those affecting or potentially affecting the performance and situation of the crypto-asset service provider as such and thus, indirectly, also affect the interests of clients.

Recital 9 Measures not limited to transparency

To ensure transparency about the measures taken to mitigate identified conflicts of interests, crypto-asset service providers should comply with the requirements to disclose conflicts of interests set out in Article 72(2) of Regulation (EU) 2023/1114. However, to ensure that conflicts of interest policies and procedures meet their objective, crypto-asset service providers should not rely on simply disclosing conflicts of interests as a way to address them. Therefore, they should comply with the requirements of disclosure, but also ensurethe identification, prevention and management of conflicts of interest.

Table of contents

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