Regulation and the role of insurance in the Cryptocurrency sector
The debate about the regulation of Cryptocurrency in the UK appears to be entering the final stages, with the publication of the Treasury's Select Committee ‘Report and Findings on Crypto-Assets’ on 19 September 2018
The report is the conclusion of an inquiry that was launched on 22 February 2018 to examine the role of digital currencies in the UK, consider the potential impact of distributed ledger technology and to evaluate the regulatory response and how regulation could be balanced to provide adequate protection for consumers and businesses without stifling innovation.
It is clear that regulation is going to be introduced in the near term, principally to protect potentially vulnerable consumers. This is welcomed by many within the sector (such as CryptoUK) and Protean Risk advocate the use of insurance as an integral part of the regulation, as we’ve seen successfully implemented in other sectors like Payment Services and Independent Financial Advisors.
Tristan Sargeaunt, Director, Fintech and Payment Services at Protean Risk concurs with the report.
"The insurance market for the Cryptocurrency exposures is maturing as Insurer’s gain greater understanding of the associated risks and complexities, and Crypto firms embed robust risk management procedures, all helping to encourage investment in the sector and position London as the centre of global Cryptocurrency.
Collaboration between the insurance market, Crypto firms and regulators is going to be essential to build knowledge and innovate with new insurance products. As members of CryptoUK, Protean Risk are looking forward to being at the forefront of this collaboration with our specialist sector focus and track record of product innovation.”
Nathan Sewell, Chief Executive, Tel: +44(0)20 3763 5353
Jason Edwards, Director, Tel: +44(0)20 3763 5360
Omar Elhag, Head of Marketing, Tel: +44(0)20 3763 5362
Fintech and Payment Services Enquiries
Tristan Sargeaunt, Director of Fintech and Payment Services, Tel: +44 (0)20 3763 5352
Charlie Cooper, Account Manager, Tel: +44 (0)20 3763 5356
Notes to Editors
Protean Risk is a Lloyd’s broker that provides specialist insurance broking services to firms in the investment industry, financial services and technology sectors. We now have over 500 clients in these sectors ranging from start-ups to international corporations.
Protean Risk has set itself apart as an insurance provider by creating new and innovative insurance products and solutions, as demonstrated by launching PSD Bond in 2018 and developing the first ‘PSD2 compliant’ PI insurance policy. We now place insurance for the majority of UK authorised AISP and PISP firms. Our objective is to continue our innovative approach in the crypto sector.
When Protean Risk was formed in 2008, the aim was to combine the knowledge and experience gained from working for large, global insurance broking firms with a high level of personal service and attention. We recognised the importance of this personal approach in helping companies achieve better insurance results. Remaining true to our core values of sector specialisation, personal service and problem solving, has helped us to grow and in 2016 we became a Lloyd’s Broker.