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  • Conflicts of interest potentially detrimental to the stablecoin issuers

    • SIO-5.8.6

      For the purpose of identifying the persons, bodies or entities with conflicting interests, stablecoin issuers should take into account whether that person, body or entity is in any of the following situations:

      (a) it is likely to make a financial gain, or avoid a financial loss, at the expense of the licensee;
      (b) it has an interest in the outcome an activity carried out or a decision taken by the stablecoin issuer, which is distinct from the licensee’s interest in that outcome;
      (c) it carries out the same business as the stablecoin issuer or is a client, consultant, service providers or other supplier of the licensee.
      Added: July 2025

    • SIO-5.8.7

      For the purposes of Paragraph SIO-5.8.6, stablecoin issuers should take into account the following situations or relationships where a shareholder, board of director, senior management, employee and third-party providing custody and management of reserve asset:

      (a) holds shares, tokens (including governance tokens), other ownership rights or membership in that person, body or entity;
      (b) holds debt instruments of or has other debt arrangements with that person, body or entity;
      (c) has any form of contractual arrangements, such as management contracts, service contracts, delegation or outsourcing contract or intellectual property licenses, with that person, body or entity.
      Added: July 2025