Marsh has launched an insurance solution for crypto-asset service providers in the EU called MiCAssure in anticipation of the Markets in Crypto-Assets Regulation (MiCA) set to be implemented on December 30, 2024. This insurance coverage addresses third-party claims related to misrepresentations, confidentiality breaches, business interruptions, legal obligations, and negligence in safeguarding clients’ crypto assets and funds. The goal of MiCAssure is to provide legal certainty, consumer protection, and address market fragmentation within the EU’s crypto-assets market. This insurance solution is a way to offer security and stability to retail users and institutions entering the digital asset space, while also providing guidance and frameworks for crypto-asset service providers.
The insurance solution has been developed by Marsh Specialty in collaboration with Lloyd’s and London market insurers. It aims to serve as both an operational safeguard and a means to unlock capital, enabling growth for crypto-asset service providers in the EU. This insurance facility follows Marsh’s earlier launch of an insurance facility for digital asset custodians in March, offering the largest insurance capacity of its kind, up to $825 million, accessible to Marsh clients worldwide. This facility supports organizations storing digital assets in offline or “cold storage” and helps them manage risks associated with the custody of digital assets.
The EU is currently working on implementing the MiCA regulation, which includes rules for the safekeeping and segregation of assets for custodians. In addition to MiCA, the EU has passed an anti-money laundering regulation applicable to all crypto-asset service providers, giving more power to Financial Intelligence Units (FIUs) to detect and combat money laundering and terrorist financing. The European Securities and Markets Authority (ESMA) is also seeking input from stakeholders on the potential inclusion of crypto assets in investment products. These regulatory initiatives, including the EU DLT Pilot Regime, are shaping a clearer regulatory landscape for cryptocurrency assets and blockchain projects in the EU compared to other major jurisdictions.
Western Europe has emerged as a leading region in global crypto adoption, attracting a substantial number of daily traders, ranging from 1.2 million to 1.5 million individuals. A recent survey has shown that nearly 50% of European cryptocurrency holders owned Bitcoin in February. The introduction of MiCAssure and other insurance solutions by Marsh is aimed at providing a comprehensive risk management and insurance solution for crypto-asset service providers operating in the EU. By addressing regulatory requirements and offering robust insurance coverage, these solutions aim to provide security, stability, and growth opportunities for companies in the digital asset space.
As the EU continues to implement regulations like MiCA and strengthen anti-money laundering measures for crypto-asset service providers, the region is establishing itself as a regulated and secure environment for digital assets. With the support of insurance solutions like MiCAssure and digital asset custodian insurance facilities, companies in the EU are better equipped to manage risks associated with crypto assets and comply with regulatory requirements. The regulatory landscape for cryptocurrency assets and blockchain projects in the EU is evolving rapidly, with a focus on providing legal certainty, consumer protection, and market stability within the digital assets market.
