CASP : Are You Really Managing Your Conflicts of Interest ? You Might Already Be in Breach of MiCA Without Even Knowing It!
- BECTRA
- Feb 25
- 2 min read
Conflicts of interest are not just a regulatory formality. They pose a serious threat to your clients' trust, the sustainability of your business, and could expose you to severe sanctions. Ignoring this reality is a high-stakes risk.
Conflicts of Interest Under MiCA: A Risk That Could Cost You Dearly
MiCA imposes heightened vigilance on CASPs regarding conflicts of interest. Two particularly critical scenarios exist:
Between your company and your clients: If your interests diverge from those of your clients, your independence could be called into question.
Between your own clients: Some clients may be in direct opposition—for example, one takes a long position while another holds a short position on the same crypto asset.
Why Should You Act Now?
Failing your clients can result in unjustified financial losses.
Damaging your reputation undermines trust in your services.
Regulatory sanctions could lead to an operational ban on your business.
If in doubt, consult your legal advisor immediately. If you don’t have one, seek help from a specialized accountant.
Your MiCA Obligations : Don’t Take Any Chances
1. Detect, Prevent, and Manage Conflicts of Interest
Implement strict policies to identify and control conflicts:
Between your company and its shareholders, executives, employees, or clients.
Between your own clients when their interests are opposed.
Example: If one client buys a crypto asset while another sells it in large quantities, your responsibility is directly engaged.
2. Inform Your Clients Transparently
Clear communication is a fundamental pillar.
Mandatory Requirement : Publish a dedicated section on your website detailing:
The nature and sources of potential conflicts of interest.
The measures implemented to mitigate them.
Why is this crucial?
Reassure your clients and strengthen their trust.
Demonstrate your MiCA compliance and avoid any suspicion.
Ensure total transparency.
Your clients must be fully informed about how you handle these sensitive situations. A clear, adapted explanation enables them to make well-informed decisions.
3. Regularly Review and Improve Your Practices
Never assume you're fully compliant. Annual audits are mandatory:
What you must do:
Analyze your policies and identify weaknesses.
Correct any vulnerabilities immediately.
Anticipate risks—even a minor oversight could lead to severe sanctions.
Protect Your Business Today
Don’t underestimate the consequences of poorly managed conflicts of interest. A clear, robust policy is your best protection against financial and regulatory risks.
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