фото показано с : invezz.com

Crypto companies in the United Arab Emirates can now access insurance to protect their digital assets, following a groundbreaking approval by the Central Bank of the UAE (CBUAE).

On September 12, Hong Kong-based insurer OneDegree, in partnership with Dubai Insurance, launched the region’s first custodial risk insurance product under the “OneInfinity” brand.

This marks a significant step in safeguarding digital assets, offering protection against risks such as hacks, fraud, and physical damage to storage media.

As the cryptocurrency market matures, the need for robust insurance to mitigate risks is becoming increasingly urgent.

OneDegree’s custodial risk insurance aims to protect digital assets from various threats, including third-party hacks, internal fraud, and physical damage to storage systems.

These risks have plagued the crypto industry for years, with high-profile hacks leading to substantial financial losses that many firms have struggled to recover from.

The global regulatory landscape is also evolving, with many authorities now requiring licensed digital asset platforms to carry custodial risk insurance.

Dubai’s Virtual Assets Regulatory Authority (VARA) is among these regulators, mandating that exchanges, custodians, and asset managers obtain coverage for custodial risk, professional indemnity, and directors’ and officers’ liability.

Robin Scott, General Manager of OneDegree in the Middle East, emphasized that custodial risk insurance is the Web3 equivalent of public deposit protection schemes used in traditional banking, offering peace of mind to clients against potential losses.

With this new product available locally, more UAE companies are expected to adopt custodial insurance as they secure licensing within the country.

This development comes on the heels of Standard Chartered’s recent regulatory approval to offer cryptocurrency custody services in the UAE, in partnership with Brevan Howard Digital.

These custody services, combined with the newly approved custodial risk insurance, enhance consumer protection as more digital asset firms set up operations in the UAE.

The UAE has been aggressively positioning itself as a global leader in cryptocurrency and blockchain innovation, particularly since the establishment of VARA in 2022.

The country has attracted over 1,000 growth-stage companies by offering incentives like zero percent tax, full foreign ownership, and access to funding, all within its strong regulatory framework.

As the UAE continues to build its crypto ecosystem, the introduction of custodial risk insurance is expected to foster increased trust and confidence among investors and businesses, further cementing the nation’s status as a global hub for digital assets.

The post UAE central bank approves digital asset custodial risk insurance product appeared first on Invezz

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