Crypto Insurance Takes Center Stage in UAE

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  • Dubai Insurance has taken 8the initiative to provide insurance coverage for crypto businesses around the region. 
  • The agreement will provide commercial liability insurance and, specifically, professional indemnity and directors & officer insurance.
  • The Hong Kong virtual Insurance company has raised over $85 million over five funding rounds. 

The financial sector is among the few industries that have showcased little evolution. Generally, the financial sector has only undergone one key transition, namely, from metal-based to paper-based currency. When cryptocurrency dawned on the world, it signified one of the most anticipated evolutions worldwide. 

Today, digital assets have grown in popularity, with organizations going as far as developing their native tokens or introducing crypto-based payment gateways. Despite the crypto sphere facing several hurdles, such as lawsuits, vague regulatory frameworks, and a suspicious ecosystem, its adoption rate has gradually increased over the past few months.

In recent news, UAE’s crypto ecosystem gears up for an anticipated revolution. According to Dubai Insurance, UAE-based crypto businesses can now tap commercial liability cover after the insurance company signed up with Hong Kong-based virtual insurance startup OneDegree.

UAE’s crypto ecosystem sets the pace yet again

The UAE is one of the most progressive crypto-based countries in the world. According to Chainalysis, the UAE accounts for 7% of the global crypto trading volume, boasting $25 billion in transactions. Amid the crypto sphere in the MENA region, UAE’s crypto ecosystem is by far the most progressive, with its government encouraging its citizens to adopt the new technology behind digital assets.

 With the world now embracing crypto payment gateway, the region has set its sights on establishing more balanced regulatory frameworks and policies to cater to [tobased businesses. In recent developments, Dubai Insurance has taken 8the initiative to provide insurance coverage for crypto businesses around the region. 

According to the official report, Dubai Insurance has signed up with Hong Kong-based virtual internal startup OneDegree to offer digital asset insurance to UAE’s crypto ecosystems. The partnership marks an anticipated tension in UAE but also marks a significant milestone for the MENA region. According to the agreement, the partners will provide commercial liability insurance and, specifically, professional indemnity and directors & officer insurance.

Also, Read UAE sets out a strategy to launch CBDC.

OneDegree is known for advancing the crypto world’s regulatory framework by providing balanced solutions that cater to both the user and the organization. Two years prior, One Degree launched OneInfinity, an insurance product that relied upon a digital asset company. This feature has significantly propelled Hong Kong’s crypto sphere.

UAE's-crypto-ecosystem
Alvin Kwock[Left], CEO of OneDegree, and Abdellatif Abuqurah [Right], CEO of Dubai Insurance officially entered a partnership to create insurance policies for UAE’s crypto businesses.[Photo/menafn]
It is among the best crypto-regulated regions in the globe. Dubai Insurance has previously worked withOneDegree as it was one of its investors during its Series B Funding. Since then, the organization’s process has significantly grown both in its approach to crypto legalities as well as its reach. 

Together, these insurance companies seek a regulated system to introduce more digital asset cover products in the UAE. Since the FTX crash, the need for better regulation has only grown, especially after the US SEC crackdown on the industry, forcing it down a peg. 

Alvin Kwock, co-founder of OneDegree, said, “OneInfinity products are helping some of the world’s best Web3 companies grow their businesses in a secure and compliant manner. 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. 

Abdellatif Abuqurah, CEO of Dubai Insurance Co., said, “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.

UAE’s crypto ecosystem inspired change in the MENA region

The UAE has steadily become a dominant player in Africa’s crypto transitions. The region boasts of housing numerous crypto-based companies, further boosting its use throughout the continent. According to Gracy Chen, Managing Director at Bitget, the MENA Region will play a pivotal role in shaping these new financial systems. She added, “The sharp focus on innovation, security, and compliance has positioned the MENA regions as a fertile ground for Web3 innovation, which has prompted global digital asset firms to make a base in the region.

Also, Read BRICS admitted six countries to the bloc, seeking to boost local currency lending.

Currently, the Hong Kong virtual Insurance company has raised over $85 million over five funding rounds. Its solutions to the vague crypto regulatory framework act as a beacon of hope for many aspiring crypto startups. UAE’s crypto ecosystem has experienced plenty of fortunate tides as several actors have taken active steps to ensure its prosperity. 

For instance, the Abu Dhabi Global Markets, via its Financial Services Regulatory Authority, was among the first to introduce guidelines on cryptocurrencies and digital assets in 2018. This generally kick-started the positive regulatory ecosystem UAE enjoys today. 

Later, the FSRA extended existing regulatory frameworks for traditional financial products to include digital assets. Among them is a custody law where the FRSA took similar approaches to other custodial activities permitted within the ADGM to ensure digital assets and custodians enjoyed the same protection offered to traditional custodians. 

This widened the scope of definitions for providing custody, client assets, and client investment to include digital assets. This significantly propelled the adoption rate of cryptocurrency as businesses, investors, and entrepreneurs soon sought out this revolutionary financial system.

These factors are but a few reasons behind the positive trajectory of UAE’s crypto ecosystem. With Dubai Insurance and OneDegree partnering, the crypto-boom within the UAE aligns with the much anticipated 2024 Bull run.

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Ken Mutuku
Ken Mutuku
I am an enthusiastic writer who believes that facts, knowledge and opinions can be expressed vividly with just a few words. I think that all forms of writing achieve this; hence I have a wide area of expertise and interest, such as cryptocurrency, psychology and the human mind.