Dubai: Crypto businesses in the UAE will soon be getting some sort of safety net for their high stakes ventures.
Dubai Insurance has signed up with Hong Kong based OneDegree to offer ‘digital asset insurance’ to such businesses. To start with, the partners will provide commercial liability insurance, and specifically ‘professional indemnity’ and ‘directors & officers’ insurance.
They will also be seeking regulator approval to introduce more digital asset cover products in the UAE. OneDegree was among the pioneers in Asia when it came to being a licensed insurer for digital assets.
"OneInfinity products are helping some of the world’s best Web3 companies to grow their businesses in a secure and compliant manner," said Alvin Kwock, co-founder of OneDegree. "With MENA, and especially the UAE, continuing to grow and attract leading digital asset companies, OneInfinity and Dubai Insurance Co. are a natural fit to identify and support good actors.”
Apart from being a popular destination for virtual asset businesses, the UAE has also been putting in place tough regulatory environments for these entities, whether they operate in a B2B or B2C space. In Dubai, all such businesses had to comply with the VARA (Virtual Assets Regulatory Authority) deadline to be fully licensed, depending on the category they operate in. Some of the virtual asset businesses also had to pay penalties for less than transparent submissions.
Helping 'good actors'
It was two years ago OneDegree launched 'OneInfinity', insurance products tailored for digital asset companies. Incidentally, Dubai Insurance Co. had been an investor in OneDegree’s Series B funding round.
"By working with OneDegree to bring Web3 insurance products to the market, Dubai Insurance Co. will be at the cutting edge of global insurance innovations,” said Abdellatif Abuqurah, CEO of Dubai Insurance Co..
The global crypto industry will close 2023 with multiple players having crashed, for various reasons, or restarting operations with a clean slate after being hit with hefty fines. The industry and its players will be hoping for a much smoother ride next year.