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Conflict of Interest Policy

Conflicts of Interest

“Bifinance” EOOD implements internal rules and procedures to identify, prevent, manage, and disclose conflicts of interest that may arise in connection with the provision of services related to cryptoassets. This information is published to ensure transparency for clients and stakeholders and complies with the requirements of Regulation (EU) 2023/1114 on crypto-asset markets, including the rules on conflicts of interest for crypto-asset service providers, as well as the applicable regulatory technical standards.

1. General Nature of Conflicts of Interest

A conflict of interest may arise when the interests of “Bifinance” EOOD, its managers, employees, related parties, external contractors, or partners may differ from the interests of clients, or when the interests of one client may be prioritized over those of another client.

Conflicts of interest may be actual, potential, or perceived. They may be of a financial or non-financial nature and may arise in connection with the provision of crypto-asset services, internal decision-making, the processing of client requests, the handling of complaints, or relationships with suppliers, outsourcing partners, or persons associated with “Bifinance” EOOD.

The Company’s internal policy applies to employees, management, members of the governing body, external contractors, outsourcing partners, and all

The Company’s internal policy applies to employees, management, members of the governing body, external contractors, outsourcing partners, and all persons involved in the provision of services related to cryptoassets.

2. Services, Activities, and Circumstances That May Give Rise to a Conflict of Interest

Conflicts of interest may arise, in particular, in connection with the following services, activities, or circumstances:

  1. the provision of services related to crypto-assets, including the processing of client orders, transfers, exchanges, custody, administration, or other services, where such services are applicable to the Company’s business;
  2. access by employees or key personnel to sensitive, confidential, or inside information;
  3. participation by an employee, manager, or related party in a decision that may have direct or indirect financial significance for them;
  4. personal, family, professional, or economic relationships between a Company employee and a client, supplier, counterparty, or other partner;
  5. relationships with external suppliers and outsourcing partners, including when the supplier is a related party or belongs to the same group;
  6. the handling of complaints by individuals who were involved in providing the service that is the subject of the complaint, or who have a personal, financial, or professional interest in its outcome;
  7. accepting or offering gifts, benefits, services, or hospitality that could influence the independence and objectivity of employees;
  8. personal investments, holdings in other companies, or other financial interests in clients, suppliers, competitors, or other parties whose interests may differ from those of “Bifinance” EOOD or its clients.

In such cases, “Bifinance” EOOD acts as a crypto-asset service provider and organizes its activities in a manner that ensures a clear separation of duties, accountability, a distinction between operational and control activities, and the independence of control units. The Company’s internal rules provide for a transparent organizational structure and effective internal control mechanisms.

3. Nature of Identified Conflicts of Interest

“Bifinance” EOOD identifies and assesses conflicts of interest based on their nature, likelihood of occurrence, and potential impact on clients and on the Company.

Examples of situations that may constitute a conflict of interest include:

  1. an employee involved in approving or serving a client with whom they have a personal or close relationship;
  2. an employee or manager who has a personal financial interest in the outcome of a service provided or an internal decision;
  3. the use of confidential information obtained in the course of official duties for personal gain or for the benefit of a third party;
  4. participating in negotiations or decision-making regarding a supplier or contractor in which an employee, manager, or related party has a financial interest;
  5. handling a complaint from a person who participated in the provision of the service that is the subject of the complaint, or who is dependent on an affected party;
  6. outsourcing of activities under conditions that may affect the interests of clients or the independence of control functions.

The Company’s internal documents expressly provide that, in the case of complaints, a conflict of interest may arise when a person involved in their review has a personal, financial, or professional interest in the outcome; has been involved in providing the service that is the subject of the complaint; is in a hierarchical relationship with the affected person; or has a close relationship with the complainant or the affected employee.

4. Related Risks

Conflicts of interest may give rise to the following risks:

  1. the risk that clients’ interests will not be put first;
  2. the risk of unequal treatment of clients;
  3. risk of unauthorized use or disclosure of confidential information;
  4. risk of decision-making influenced by personal, financial, or professional interests;
  5. risk of damage to trust in the Company and its reputation;
  6. risk of regulatory non-compliance;
  7. operational risk, including insufficient segregation of duties or inadequate controls;
  8. risk of ineffective or biased handling of complaints.

According to the internal rules of “Bifinance” EOOD, the existence of a conflict of interest does not automatically preclude a person from performing a specific function; however, when the conflict poses a significant risk and cannot be prevented, mitigated, or managed appropriately, it must be escalated and managed through appropriate measures.

5. Measures to Prevent and Mitigate Conflicts of Interest

“Bifinance” EOOD implements measures commensurate with the nature, scale, and complexity of its operations. These measures include:

  1. an internal policy for avoiding, identifying, managing, and disclosing conflicts of interest;
  2. clear allocation of functions, responsibilities, and lines of authority;
  3. separation between operational functions and control functions;
  4. involvement of the compliance function in identifying, assessing, and managing conflicts of interest;
  5. an obligation for employees, managers, and related parties to disclose personal, financial, professional, or other interests that may give rise to a conflict;
  6. restrictions on the use of confidential information for personal gain;
  7. rules regarding gifts, benefits, and hospitality;
  8. mechanisms for recusing a person who is in an actual or potential conflict of interest;
  9. documentation of identified conflicts, their assessment, and the measures taken;
  10. training and informing employees about the rules on conflicts of interest;
  11. periodic review and updating of internal policies and procedures;
  12. monitoring outsourcing relationships, including an assessment of whether they could give rise to significant conflicts of interest;
  13. independent review of complaints and a prohibition on a complaint being reviewed by a person connected to the case.

The internal rules stipulate that, in the event of outsourcing, the head of the Compliance Department shall identify, assess, and manage conflicts of interest arising from such relationships and propose appropriate measures to the manager when the conflict is material.

6. Disclosure of Conflicts of Interest

When organizational and administrative measures are insufficient to ensure, with reasonable certainty, that the risk of harm to clients’ interests will be prevented, “Bifinance” EOOD discloses to the client the general nature and sources of the conflict of interest, the associated risks, and the measures taken to mitigate it, prior to providing the relevant service or performing the relevant action.

This disclosure is made in a clear, precise, and understandable manner so that the client can make an informed decision regarding the relevant service.

7. Reporting a Potential Conflict of Interest

Clients, employees, suppliers, or other interested parties who believe that a conflict of interest has arisen or may arise may notify “Bifinance” EOOD through the Company’s official contact channels.

Every report is reviewed objectively, in a timely manner, and in compliance with confidentiality requirements. When necessary, the matter is escalated to the compliance function and/or the management body.