A new chapter has opened for the UAE’s crypto industry.
In the latest crypto news, the Central Bank of the United Arab Emirates (CBUAE) has given the green light to a groundbreaking insurance product that protects digital assets,
In a collaborative effort, Hong Kong’s OneDegree and Dubai Insurance have rolled out digital asset custodial risk insurance under their joint brand, “OneInfinity.” With approval from the CBUAE, this insurance is now available to UAE customers, offering a much-needed layer of security.
Custodial risk insurance has become a crucial piece of the puzzle for custodians, crypto exchanges, and other digital asset service providers. With increasing global regulatory pressure, it’s no longer a “nice-to-have” but a necessity.
This type of insurance shields businesses from risks like losing access to digital assets due to hacking, physical damage, or even internal fraud.
Robin Scott, OneDegree’s general manager for the Middle East, explained:
Custodial risk insurance covers Web3 exchanges, custodians, asset managers, etc., against the risk of losing access to customers’ digital assets. This may be caused by a hacking event, physical damage to the storage media or internal fraud.”
Scott also pointed out that regulators worldwide are increasingly requiring custodial risk insurance, especially as consumer protection remains a top priority. The CBUAE’s approval means that for the first time, companies in the UAE can secure this critical coverage on-shore, giving them local access to a product that could prove indispensable as the region’s crypto market continues to expand.
OneDegree and Dubai Insurance are already writing policies for UAE-based clients, and Scott expects demand to skyrocket as more companies in the UAE become licensed.
This move is expected to bring a new level of trust and security to the UAE’s digital asset ecosystem, positioning the country as a leader in crypto protection and regulation.
