Marsh, the insurance broking and risk advisory business of Marsh McLennan, has introduced a new insurance solution called MiCAssure for crypto-asset service providers operating within the European Union (EU). This comes in anticipation of the upcoming Markets in Crypto-Assets Regulation (MiCA), which is scheduled to be implemented on December 30, 2024. MiCAssure is designed to address the regulatory framework established by MiCA to provide legal certainty, consumer protection, and address market fragmentation within the EU’s crypto-assets market. The insurance solution covers third-party claims related to misrepresentations, confidentiality breaches, business interruption, legal obligations, and gross negligence in safeguarding clients’ crypto assets and funds.
The launch of MiCAssure by Marsh Specialty, in collaboration with Lloyd’s and London market insurers, aims to enhance the credibility of the digital asset ecosystem by offering security and stability to retail users and institutions entering the digital assets space within the EU. Rupert Poland, the UK digital asset leader at Marsh Specialty, stated that MiCAssure serves as both an operational safeguard and a means to unlock capital for crypto-asset service providers, facilitating their growth within the EU. This insurance solution not only offers clients an operational safeguard but also has the potential to free up capital, making it a vital insurance and risk management solution for crypto-asset service providers operating in the EU.
In addition to MiCAssure, Marsh previously launched an insurance facility in March for digital asset custodians, including financial institutions. This facility, with a maximum insurance capacity of $825 million, supports organizations that store digital assets in offline or “cold storage” and is accessible to Marsh clients worldwide. The EU is currently working on implementing the MiCA regulation, which includes rules for safekeeping and segregation of assets for custodians. Last month, the EU passed an anti-money laundering regulation applicable to all crypto-asset service providers (CASPs) to enhance the powers of the Financial Intelligence Units in detecting and combating money laundering and terrorist financing.
The European Securities and Markets Authority (ESMA) is seeking input from stakeholders regarding the potential inclusion of crypto assets in investment products. By the end of the year, all of MiCA’s rules are expected to be online, providing a clear regulatory landscape for cryptocurrency assets and blockchain projects in the European Union. Western Europe has emerged as a leading region in global crypto adoption, attracting a substantial number of daily traders. A recent survey indicated that nearly 50% of European cryptocurrency holders owned Bitcoin in February, highlighting the growing popularity and acceptance of cryptocurrencies in the region. The regulatory advancements and insurance solutions offered by Marsh aim to provide a secure and stable environment for crypto-asset service providers in the EU, ensuring legal certainty and consumer protection within the evolving digital assets market.
