Marsh Launches Insurance Solutions for EU Crypto Asset Service Providers
Marsh, the insurance broking and risk advisory business of Marsh McLennan, has unveiled an insurance solution called MiCAssure specifically designed for providers of crypto-asset services within the European Union (EU).
The launch of MiCAssure comes in anticipation of the upcoming Markets in Crypto-Assets (MiCA) Regulation, which is set to come into force on December 30, 2024, according to a press release issued on Thursday.
MiCAssure is designed to address the regulatory framework created by MiCA, which aims to provide legal certainty and consumer protection and counter market fragmentation within the EU crypto-asset market.
MiCAssure covers third-party claims related to misrepresentation
The insurance solution, developed by Marsh Specialty in collaboration with Lloyd’s and London market insurers, provides cover for third-party claims related to misrepresentation, breach of confidentiality, business interruption, statutory obligations and gross negligence in securing clients’ crypto assets and funds.
“Regulatory advances such as MiCA strengthen the credibility of the digital asset ecosystem by providing certainty and stability to retail users and institutions venturing into the digital asset space, while providing a solid guidance and framework for crypto asset providers,” said Rupert Poland, Digital Asset Leader at Marsh Specialty in the UK.
He claimed that MiCAssure serves as both an operational hedge and a means of capital release, thus promoting the growth of crypto asset service providers operating in the EU.
🔒 Protect your cryptocurrencies like never before! Marsh introduces revolutionary insurance solutions tailored specifically for EU customers. Say goodbye to sleepless nights worrying about your investments! 🛡️ #MarshCrypto #SecureYourFuture pic.twitter.com/7qDIucnw5W
— Koinpro Exchange (@ProKoin) May 9, 2024
The launch of MiCAssure follows Marsh’s previous launch in March of an insurance facility for digital asset custodians, including financial institutions.
This facility, which has the largest insurance capacity of its kind of up to $825 million, is available to Marsh clients worldwide.
It specifically supports organizations that store digital assets offline or in “cold storage”.
EU working on implementing MiCA
The EU is in the process of implementing the MiCA regulation, which includes rules on the secure storage and segregation of assets for custodians.
Last month, the EU officially adopted an Anti-Money Laundering Regulation (AMLR) that applies to all crypto asset service providers (CASPs).
The laws would give Financial Intelligence Units (FIUs) more powers to detect and combat money laundering and terrorist financing.
Recently, the EU securities regulator, the European Securities and Markets Authority (ESMA), announced that it is seeking input from stakeholders on the potential inclusion of crypto assets in investment products.
“By the end of the year, all MiCA rules are expected to go live,” said Nicolas Streschinsky, Head of DeFi at Trilitech, in a comment.
“Together with other initiatives such as the EU DLT pilot regime, the regulatory landscape for cryptocurrency assets and blockchain-related projects in the European Union is quickly becoming the clearest of all major jurisdictions.”
As reported, Western Europe has emerged as a leading region in global cryptocurrency adoption, attracting a significant number of day traders, ranging between 1.2 and 1.5 million individuals.
Another recent survey found that nearly 50% of European cryptocurrency holders owned Bitcoin in February.
