The UAE’s central bank has approved a digital asset custodial risk insurance product
As a result of the approval of a new product by the Central Bank of the United Arab Emirates (CBUAE), an issuer will now be able to offer digital assets custodial risk insurance to its customers.
OneDegree, a Hong Kong-based insurance provider, and Dubai Insurance, a UAE-based provider, announced a partnership to provide digital asset custodial risk insurance to UAE residents. As part of their collaboration on a brand called “OneInfinity,” the companies said they got approval from CBUAE to offer the product.
Among the risk management strategies for custodians, exchanges, and other providers of digital assets is custodial risk insurance. According to OneDegree, many regulators worldwide require the product.
Custodial risk insurance covers the risk of losing access to crypto
OneDegree executive Robin Scott told Cointelegraph that the insurance protects Web3 asset managers from losing customer funds.
The Central Bank of the United Arab Emirates (CBUAE) has approved a new product that enables an issuer to provide digital asset custodial risk insurance. OneDegree, an insurance provider located in Hong Kong, and Dubai Insurance, based in the UAE, have announced that they would begin providing digital asset custodial risk insurance to UAE consumers. The firms, who are working on a brand dubbed “OneInfinity,” said they received approval from CBUAE to offer the product.
Custodial risk insurance is a component of risk management plans for custodians, exchanges, and other digital asset service providers. According to OneDegree, several regulators throughout the world demand the product.
The executive further told Cointelegraph that regulators throughout the world require this product since consumer protection is their major concern. The insurance executive stated that authorities aim to ensure that businesses and individuals utilising digital asset platforms for which they give licenses are safeguarded in the event of asset losses.The insurance professional also stated that the CBUAE’s approval of their insurance product means that enterprises in the UAE can now purchase this insurance within the country. “This means that companies in UAE will be able to buy custodial risk insurance on-shore in UAE for the first time,” according to him. Scott stated that OneDegree and Dubai Insurance have already begun writing custodial risk insurance for UAE clients.
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