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  • Conflict of interest potentially detrimental to the clients

    • SIO-5.8.4

      For the purposes of identifying the types of conflicts of interest that arise in the course of issuing, processing and redeeming approved stablecoins or of investing or managing the reserve assets and whose existence may damage the interests of the clients, stablecoin issuers should take into account, whether the licensee, shareholders, board of directors, senior management, employees and third parties providing custody and management of reserve asset service is in any of the following situations:

      (a) is likely to make a financial gain, avoid a financial loss, or receive another kind of benefit, at the expense of the clients;
      (b) it has an interest in the outcome of an activity carried out to the benefit of the client, including the redemption of the approved stablecoin, which is distinct from the interest of the client.
      Added: July 2025

    • SIO-5.8.5

      For the purposes of identifying the types of conflicts of interest that arises in the course of managing the reserve assets, the stablecoin issuer shall assess whether it receives or will receive an inducement in relation to that activity in the form of monetary or non-monetary benefits or services in a way that may damage the interest of the client.

      Added: July 2025