The crypto industry in the UAE is set for enhanced protection and stability with Dubai Insurance’s new collaboration with OneDegree to provide specialized insurance solutions. As the region’s crypto market continues to expand rapidly attracting major global players, this strategic move aims to secure the safe operation and growth of digital asset businesses.
Dubai has emerged as a leader in fostering the development of blockchain and virtual asset ventures through progressive regulations and partnerships with key industry stakeholders. Recognizing the need for customized risk coverage, Dubai Insurance and OneDegree will leverage their expertise to design bespoke policies addressing the unique requirements of crypto enterprises. Their collaboration marks a milestone for protecting innovation in the dynamic virtual asset space through sophisticated insurance products.
To start with, the partners will offer commercial liability insurance options such as professional indemnity and directors’ and officers’ liability coverage to local crypto companies. These policies protect businesses from costly legal battles and reimburse losses resulting from negligent actions or errors by employees and management. By safeguarding firms from unforeseen hazards and contingencies, liability insurance fosters stability in high-risk industries like crypto that are still developing robust risk frameworks.
Additionally, OneDegree brings globally-recognized credentials from being a pioneer in insuring digital currencies and blockchain ventures in Asia markets. Their proprietary ‘OneInfinity’ offerings designed for the nuances of virtual asset operations will now be introduced in the UAE through this partnership. Subject to regulatory approvals, Dubai Insurance and OneDegree also plan to roll out more innovative coverage constructs addressing unique crypto risks involving cyber threats, asset theft, and marketplace volatility.
The UAE government has taken a progressive stance promoting the digital asset sector through progressive licensing and compliance standards enforced by VARA. However, with crypto project failures and security breaches frequently reported worldwide, adequate commercial protection is equally important for nurturing a sustainable ecosystem. By safeguarding reputed industry players from potential regulatory penalties and losses, insurance encourages ethical business practices and compliance.
For Dubai Insurance, this tie-up represents a strategic foray into emerging technologies forecast to reshape traditional finance. Partnering with reputed global insurtech firms enables the insurer to stay at the forefront of coverage innovation. Going forward, their collaborative efforts can strengthen the UAE’s position as a digital asset hub by addressing risk concerns deterring larger enterprises. With a track record of supporting new sectors, Dubai Insurance is well-positioned to enable the long-term growth of virtual currencies through sophisticated risk transfer solutions.
This strategic partnership heralds a new phase of maturity for the UAE’s fast-growing crypto industry. By providing a safety net to reputed companies, comprehensive insurance coverage can boost investor confidence while rewarding those upholding regulatory standards. As the sector evolves, such collaborations will play an important role in sustaining the momentum and realizing the industry’s true potential through prudent risk management. The future of decentralized technologies in the region is promising with initiatives enabling their responsible development and commercial protection.
