Marsh has launched MiCAssure, an insurance solution for crypto-asset service providers operating in the EU.
The offering is designed for EU-based providers, including custodians, exchanges and administrators, who must comply with the forthcoming Markets in Crypto-Assets Regulation (MiCA).
Scheduled for implementation on 30 December, MiCA establishes a comprehensive regulatory framework for the crypto-assets market, aiming to improve legal certainty, consumer protection, and regulatory fragmentation.
It mandates that regulated firms authorised under MiCA have prudential safeguards in place to cover specific risks, either using their own funds or maintaining an insurance policy.
Developed by Marsh Specialty in collaboration with Lloyd’s and London market insurers, MiCAssure covers third party claims from misrepresentations, obligations of confidentiality, business interruption, legal and regulatory obligations, and negligence in the safeguarding of clients’ crypto-assets and funds.
The product also provides protection for the risks detailed in MiCA's prudential requirements and assists firms in eliminating or reducing the need to set aside capital to meet their exposures in accordance with the regulation.
Rupert Poland, UK digital asset leader at Marsh Specialty, says: “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 asset 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.”
