Thu, May 09, 2024 at 14:19

• 

  Kang-hoon

  • Good day, Annie.

  • I have some news about Marsh, the insurance broking and risk advisory business of Marsh McLennan.

  • They've just announced a new insurance solution called MiCAssure, designed for crypto-asset service providers operating within the European Union.

  • 
• Annie

  • Oh, really?🤔 That sounds interesting.

  • What's special about this MiCAssure?

  
• 

  Kang-hoon

  • MiCAssure is designed to address the regulatory framework established by the forthcoming Markets in Crypto-Assets Regulation (MiCA), which is set to be implemented on December 30, 2024.

  • It aims to provide legal certainty, consumer protection, and address market fragmentation within the EU's crypto-assets market.

• Annie

  • So it's like a safety net for crypto-asset service providers in the EU?😮

  
• ADward

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• 

  Kang-hoon

  • Exactly.

  • Developed in collaboration with Lloyds and London market insurers by Marsh Specialty, MiCAssure offers coverage for third-party claims related to misrepresentations, confidentiality breaches, business interruption, legal obligations, and gross negligence in safeguarding clients' crypto assets and funds.

• Annie

  • Wow!

  • That sounds like a comprehensive coverage.👍 But why now?

  • Why is this necessary?

  
• 

  Kang-hoon

  • 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 assets space.

  • It provides robust guidance and frameworks for crypto-asset service providers.

• Annie

  • I see.

  • So it's like a step towards making the crypto market more secure and reliable.😊

  
• 

  Kang-hoon

  • Indeed.

  • In fact, this isn't Marsh's first venture in this area.

  • Back in March, they launched an insurance facility for digital asset custodians, including financial institutions.

  • This facility, which boasts the largest insurance capacity of its kind, up to $825 million, is accessible to Marsh clients worldwide.

• Annie

  • Wow, they seem to be really committed to this space!👏 But what about the regulations?

  • Are there any updates on that front?

  
• 

  Kang-hoon

  • Yes, the EU is in the process of implementing the MiCA regulation, which includes rules for safekeeping and segregation of assets for custodians.

  • Last month, the EU formally passed an anti-money laundering regulation applicable to all crypto-asset service providers.

  • This will give more powers to Financial Intelligence Units to detect and combat money laundering and terrorist financing.

  • 
• Annie

  • That sounds like a lot of progress!😄 So, is this news good or bad?

  • What impact will it have on the market?

  
• 

  Kang-hoon

  • This is certainly good news.

  • It shows that the regulatory environment for cryptocurrency assets and blockchain-linked projects in the European Union is rapidly becoming clearer.

  • This will likely attract more traders and investors, fostering growth in the crypto market.

  • Upon comprehensive consideration, this news is perceived as a 😍Bullish.