Crypto Professional: A High-Risk Profession?

Cryptocurrency players face unprecedented risks; the role of insurers is evolving to support them.

In a constantly evolving global financial landscape, cryptocurrencies are emerging as a major strategic issue for financial institutions. Their growing adoption, exacerbated by recent events, reflects a transformation that is redefining economic and financial relationships worldwide. As a pioneer in the field of insurance for financial institutions in Europe for over 20 years, Liberty Specialty Markets (LSM) positions itself as a trusted partner, providing tailored solutions for this new reality.

"This revolution comes with significant challenges. Extreme price fluctuations, security concerns, and a still-developing regulatory framework pose considerable risks for market players. In this context, established financial institutions and innovative startups must integrate robust insurance solutions to protect their operations and clients. This is where Liberty Specialty Markets comes in," says Benjamin Satgé, Financial Risks Underwriter - Financial Institutions at LSM.

LSM recently launched an insurance solution dedicated to risks associated with cryptocurrencies, particularly for companies compliant with the EU’s MiCA (Markets in Crypto-Assets) directive. This directive aims to establish a clear regulatory framework for services related to digital assets, thereby enabling better protection for investors.

The coverage offered by LSM includes protection against risks related to professional liability, management errors, and fraud risks. These solutions are essential for supporting digital asset service providers, as well as entities that do not operate under this status, ensuring their resilience in a rapidly changing environment. With capacities ranging from 1 to 3 million euros and coverage tailored to the specifics of French law, LSM can support both startups and established companies leading the crypto market.

In conclusion, as cryptocurrencies continue to redefine the financial landscape, the support of insurers proves crucial. By partnering with LSM, cryptocurrency players can not only protect themselves against inherent risks but also seize new opportunities in a transforming market. In this era of rapid change, LSM positions itself as a key player, ensuring that its clients remain protected while exploring vast new possibilities.