Marsh launches new insurance solution for EU crypto market
Global brokerage Marsh has launched a new insurance solution for crypto-asset service providers to comply with the forthcoming Markets in Crypto-Assets Regulation (MiCA) within the European Union (EU).
MiCAssure is a proprietary insurance solution for crypto-asset service providers such as custodians, exchanges, and administrators operating within the EU.
The solution was developed by Marsh Specialty in conjunction with both Lloyd’s and London market insurers. It aims to provide cover for third party claims arising from misrepresentations or misleading statements, obligations of confidentiality, business interruption, legal and regulatory obligation, and gross negligence in the safeguarding of clients’ crypto-assets and funds.
Marsh said the new solution is designed to provide protection for the risks detailed in MiCA’s prudential requirements and aid firms in the elimination or reduction of the need to set aside capital to meet their exposures in accordance with the regulation.
MiCA is set to be introduced on December 30, 2024, to create a regulatory framework for the crypto-assets market within the EU. The regulation seeks to address the challenges associated with legal certainty, consumer protection, and regulatory fragmentation in the market for crypto-assets and services. It requires that regulated firms authorised under MiCA to implement prudential safeguards, either using their own funds or maintaining an insurance policy, to cover specific risks.
Rupert Poland, UK digital asset leader, Marsh Specialty, said: “Regulatory advancements such as MiCA enhance the credibility of the digital asset ecosystem by offering security and stability to retail users and institutions venturing into the digital assets space, while providing robust guidance and frameworks for crypto asset service providers.
“MiCAssure not only offers clients an operational safeguard but also has the potential to free up capital and facilitate growth, making it a vital insurance and risk management solution for crypto-asset service providers operating in the EU.”
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