Marsh, a global insurance broker and risk advisor, has announced the launch of MiCAssure, a proprietary insurance solution designed for crypto-asset service providers in the European Union (EU). The offering aims to help firms comply with the forthcoming Markets in Crypto-Assets Regulation (MiCA), which is set to take effect on December 30 this year.
According to a news release, MiCA establishes a comprehensive regulatory framework for the crypto-assets market within the EU, focusing on legal certainty, consumer protection, and reducing regulatory fragmentation. It requires regulated firms authorised under MiCA to have prudential safeguards, either through their own funds or by maintaining an insurance policy, to cover specific risks.
MiCAssure, developed by Marsh Specialty in collaboration with Lloyd’s and London market insurers, provides coverage for a range of risks that crypto-asset service providers may encounter, the news release noted. These risks include third-party claims arising from misrepresentations or misleading statements, obligations of confidentiality, business interruption, legal and regulatory obligations, and gross negligence in safeguarding clients’ crypto-assets and funds.
Marsh Specialty noted that this insurance solution aligns with MiCA’s prudential requirements and aims to help firms reduce or eliminate the need to set aside significant capital to meet regulatory demands.
Rupert Poland, UK digital asset leader at Marsh Specialty, remarked on the significance of MiCAssure in the context of the new regulation.
“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,” he said.
Poland added that MiCAssure offers not only operational safeguards but also the potential to free up capital, enabling growth for crypto-asset service providers in the EU. He emphasised that this insurance and risk management solution is critical for firms navigating the evolving landscape of EU crypto regulations.
Have something to say about this story? Leave a comment below.
