Conflict of Interest Disclosure

in accordance with Article 72 of the Markets in Crypto-Assets Regulation (EU) 2023/1114 (MiCAR)

In compliance with Article 72 of MiCAR, this disclosure sets out approach of CEX.IO EU VASP (hereinafter referred to as ‘CEX.IO’) to the identification, prevention, management, and disclosure of conflicts of interest. It describes the general nature and sources of conflicts of interest that may arise in the course of the provision of the Services, the specific risks such conflicts may pose to the Users, and the steps and internal controls that CEX.IO has implemented to address them. For the purposes of this Disclosure, a conflict of interest shall mean any situation in which the personal, financial, or other interests of CEX.IO its employees, Affiliates, group entities, or connected persons compromise or may reasonably be perceived to compromise the impartiality or integrity of decisions taken in the best interests of the Users. Where conflicts or potential conflicts are identified, CEX.IO undertakes to ensure that such conflicts are effectively and fairly managed in order to safeguard the interests of the Users and the integrity of the Services.

TYPES OF CONFLICTS OF INTEREST

Conflicts of interest may arise in the course of the provision of the Services and that such conflicts may be actual, potential, or perceived. Conflicts of interest may occur between CEX.IO and the User, between different Users, or the interests of CEX.IO and those of its Affiliates, shareholders, directors, employees, representatives, or business partners.

Such circumstances may include, without limitation, situations where:

CEX.IO or its Affiliates derive financial, commercial, or strategic benefits from the execution, non-execution, pricing, or timing of a Transaction;
CEX.IO may prioritise certain categories of Users or Transactions over others;
CEX.IO may receive or be entitled to receive fees, commissions, rebates, or non-monetary benefits from third parties, including Affiliates, service providers, or issuers of Digital Assets, which may influence or appear to influence the provision of the Services;
CEX.IO or its employees, officers, or representatives may engage in personal activities, trading, or investment in Digital Assets in a manner that could conflict with the interests of the Users;
relationships with Affiliates, group entities, or external business partners may result in preferential treatment, bias, or restrictions in the Services;
the commercial, financial, or contractual interests of CEX.IO could diverge from the duty to act in the best interests of the Users; or
Users compete for the execution of Transactions in the same Digital Asset, creating the risk of unequal treatment or prioritisation. Such conflicts may be heightened where certain Users, by reason of their size, trading volume, or commercial relationship with CEX.IO, are perceived to receive preferential terms, access, or execution priority in a manner that could disadvantage other Users.

MANAGEMENT AND DISCLOSURE OF CONFLICTS OF INTEREST

CEX.IO has established and maintains comprehensive internal policies, organisational arrangements, and administrative procedures for the identification, prevention, management, and where necessary disclosure of conflicts of interest which may arise in the course of providing the Services. Such arrangements are designed to ensure that the interests of the Users are not adversely affected and include, without limitation, the segregation of responsibilities among staff, the establishment of information barriers to protect confidential data, the maintenance of a register of identified and potential conflicts of interest, the implementation of restrictions on personal transactions in Digital Assets by employees and representatives, the ongoing monitoring of employee conduct, and the adoption of remuneration practices that do not create incentives misaligned with the interests of the Users. Where conflicting activities cannot be effectively managed within a single unit, CEX.IO may separate such activities into distinct business lines with independent oversight and apply information barriers to ensure that confidential or commercially sensitive information is not improperly shared.

The effective implementation and ongoing oversight of conflict of interest arrangements rests with the senior management and Board of Directors of CEX.IO. The Compliance function of CEX.IO is entrusted with maintaining the conflict of interest policy, monitoring adherence to internal procedures, reviewing the effectiveness of organisational measures, and ensuring that identified conflicts are appropriately recorded, assessed, and managed. Serious or unresolved conflicts of interest shall be escalated to senior management for resolution and, where required by applicable law or regulation, may be reported to the competent supervisory authority. CEX.IO shall provide periodic reporting on conflicts of interest to its governance bodies and shall make improvements to its arrangements where necessary to ensure that the interests of the Users remain fully protected.

DISCLOSURE

CEX.IO shall ensure that any material conflict of interest that cannot be fully prevented or effectively mitigated is disclosed to the User in a clear, timely, and accessible manner through the Site and other relevant User interfaces, ensuring that the User is able to make an informed decision regarding the use of the Services. Where such circumstances arise, CEX.IO shall provide the User with a clear, specific, and timely disclosure setting out the nature and sources of the conflict together with the measures adopted to manage it. Such disclosures shall be made available through the Site and other relevant User interfaces and shall contain sufficient information to enable the User to make an informed decision regarding the continued use of the Services. This disclosure obligation does not replace CEX.IO’s primary duty to prevent and actively manage conflicts of interest wherever feasible, but applies only where such conflicts cannot be fully avoided or adequately mitigated.

CONFLICT RISKS AND MITIGATIONS

Potential User order prioritisation conflict of interest

A conflict of interest may arise where multiple Users place competing orders for the same Digital Asset, particularly in illiquid markets, creating the risk of unfair or unequal prioritisation. Such circumstances may result in certain Users receiving more favourable pricing or execution outcomes than others, which could undermine fairness, transparency, and trust in the Services. To mitigate this risk, CEX.IO applies objective and transparent criteria to the handling of all User Transactions, ensures that orders are treated consistently, and monitors execution outcomes through compliance oversight and post-trade reviews. Exceptions or anomalies are escalated for investigation and remediation in order to safeguard the principle of fair treatment for all Users.

Potential employee personal conflict of interest

A conflict of interest may arise where an employee, officer, or representative of CEX.IO holds a directorship, financial interest, or other external role in relation to a User, which may compromise the impartiality of decisions concerning onboarding, referrals, or Transactions. Such circumstances create the risk that the personal interests of the employee could influence, or be perceived to influence, the fair and objective delivery of the Services. To mitigate this risk, all external appointments, financial interests, or business engagements must be disclosed in advance and are subject to Compliance review and approval. Where approved, controls may include restrictions on duties, recusal from decision-making, ongoing monitoring, and periodic conflict reviews to ensure that User interests are not compromised.

Potential User inducement and preferential treatment risk

A conflict of interest may arise where a User offers gifts, benefits, or other inducements to an employee, officer, or representative of CEX.IO with the intention of obtaining preferential treatment in the provision of the Services. Such conduct creates the risk of undermining the principles of fairness, equal access, and trust among Users. To mitigate this risk, CEX.IO enforces a strict Anti-Bribery framework, which prohibits the acceptance of inducements, requires all gifts and benefits to be declared and reported, and subject employees to compliance oversight, annual training, and disciplinary measures for breaches.

Potential conflict of interest in connection with group membership

A conflict of interest may arise where CEX.IO operates as part of a wider corporate group, creating complex interrelationships and overlapping business activities with Affiliates. Such circumstances may lead to the risk of biased decision-making, preferential treatment of group entities, or lack of transparency for the User, including uncertainty regarding the contracting entity. These conflicts may result in recommendations or decisions that prioritise the interests of Affiliates or related parties over the best interests of the Users, potentially causing less favourable outcomes such as suboptimal pricing, increased costs, or limited access to alternative Services. To mitigate this risk, CEX.IO applies governance arrangements and disclosure practices to ensure clarity in the identity of the contracting entity, requires group relationships to be assessed on an arm’s-length basis, and subjects intra-group dealings to oversight by the Board and Compliance function to protect the interests of the Users.