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DOI: https://doi.org/10.34069/AI/2024.74.02.13
How to Cite:
Biletska, L., Kulyk, O., & Shumak, I. (2024). Insurance of virtual assets: problems of theory and practice. Amazonia
Investiga, 13(74), 156-164. https://doi.org/10.34069/AI/2024.74.02.13
Insurance of virtual assets: problems of theory and practice
Страхування віртуальних активів: проблеми теорії та практики
Received: December 20, 2023 Accepted: January 28, 2024
Written by:
Liudmyla Biletska1
https://orcid.org/0000-0002-5081-610X
Oleh Kulyk2
https://orcid.org/0000-0003-1195-9869
Ihor Shumak3
https://orcid.org/0000-0003-3799-7476
Abstract
Many companies use large volumes of virtual assets
to run their business, but traditional insurance
products are not effective enough to address the
unique challenges of virtual assets. In addition,
legal regulation in this area is dynamic and
ambiguous. This shows that the study of the
insurance of virtual assets is an urgent task, as it
responds to the modern challenges associated with
digital technologies and creates a basis for the
development of effective strategies and tools in the
field of insurance.
The purpose of the study is to clarify problematic
issues in the theory and practice of insurance of
virtual assets. The research methodology consists of
the following methods: legal analysis method,
empirical method, historical method, concept
analysis method and argumentation analysis
method, system method, analogy method, induction
and deduction method.
It is concluded that classic insurance products may
be inadequate to solve the unique risks of virtual
assets, while there is a need to develop new
insurance products that take into account digital
threats and losses, becoming a necessity. In
addition, the lack of a clear legal framework in the
field of insurance of virtual assets creates a
consequential gap, and, therefore, the need to
develop and implement standards and regulations
has become an urgent task for the diversification of
legal regulation.
1
Ph. D., Associate Professor of the Law Department of the Lviv Institute "Higher Educational Institution" Interregional Academy of
Personnel Management", Ukraine. WoS Researcher ID: KII-9777-2024
2
PhD in Law, Associate Professor at the Department of International Law and Branch Legal Disciplines, Kyiv University of Law of
the National Academy of Sciences of Ukraine, Kyiv, Ukraine.
3
Ph.D. in Law, Associate Professor of the Department of Intellectual Property and Private Law, Faculty of Sociology and Law,
National Technical University of Ukraine "Ihor Sikorsky Kyiv Polytechnic Institute", Ukraine. WoS Researcher ID:
KII-2805-2024
Biletska, L., Kulyk, O., Shumak, I. / Volume 13 - Issue 74: 156-164 / February, 2024
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Keywords: cryptocurrency, virtual assets,
insurance, security, stability, financial market,
problematic issues, digital resources.
Introduction
In the conditions of rapid development of digital
society and technological innovations, the issue
of ensuring the security of virtual assets is
becoming increasingly meaningful. The growing
use of digital platforms and virtual tools in
business, personal life, and other areas leads to
the emergence of new risks that require study and
resolution by the insurance sector. Insurance of
virtual assets becomes a complex and urgent
problem both for the theory and practice of
insurance. At the same time, numerous
challenges and issues arise related to the
development of adequate insurance strategies,
perseverance of insurance premiums, risk
assessment, and determination of responsibility
in conditions of digital uncertainty. In essence,
virtual asset insurance opens up a wide area for
research in the fields of finance, technology, and
legal regulation. With the growing interest in this
direction, it becomes noteworthy to develop not
only theoretical concepts but also practical tools
to ensure the effective functioning of the
insurance system of virtual assets in conditions
of uncertainty and rapidly changing
technological landscape.
The object of research is the insurance of virtual
assets, namely the concept, legal regulation, and
problematic issues in scientific doctrine and
practical application.
This study focuses on the fundamental aspects of
the problems and possible ways to solve the
issues of insurance of virtual assets, covering
both theoretical and practical aspects of this vital
issue in the context of today's digital world.
The tasks of the research are as follows:
1. To analyze the features of virtual assets and
their regulation in modern conditions.
2. Pay attention to the issue of legal support for
insurance of virtual assets.
3. Investigate problematic issues of insurance
of virtual assets and consider ways to solve
them.
The article consists of an abstract, introduction,
methodology, literature review, main text,
conclusions and a list of used literature.
The following specific terms were used during
the study:
Virtual assets are a term that covers any digital
instrument that has a generated value and is
suitable for exchange or use for specific
purposes.
Insurance risks - a certain event for which
insurance is provided and which has signs of
probability and randomness of occurrence.
Cryptocurrency is a digital currency designed to
work as a medium of exchange through a
computer network that is not reliant on any
central authority, such as a government or bank,
to uphold or maintain it.
Token - a unit of account, which is not a
cryptocurrency, intended to represent a digital
balance in some asset, in other words, performing
the function of a "substitute for securities" in the
digital world.
Theoretical framework or literature review
The research of Arkhireyska (2021) analyzed the
regulatory and legal regulation of virtual assets in
Ukraine. According to the scientists, the issue of
regulating the activities of participants in the
virtual assets market should be referred to the
competence of the NBU and the National
Securities and Stock Market Commission. The
author also noted that the adoption of the law "On
Virtual Assets" is a significant step by the
authorities to regulate the market of virtual
assets, including the crypto industry.
Antoniv (2022) turned his attention to insurance
during the war. In particular, the author came to
the conclusion that insurance contracts are valid
regardless of the introduction of martial law in
Ukraine, with standard force majeure clauses that
are also applied in other types of contracts.
Instead, the researcher draws attention to the fact
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that, as a rule, insurers do not cover "war" risks
and exclude war zones and territories not
controlled by the government from the insurance
territory.
Chichkan (2021) conducted an analysis of the
place and importance of state social insurance in
the modern system of social protection of the
population, indicating the complexity and
ambiguity of approaches in this area. It was
concluded that, on the one hand, mandatory
social insurance is considered as the basis and
optimal way of organizing the social protection
system, which is based on historical experience,
international standards and is recognized in the
scientific works of many modern scientists (as
stated above). On the other hand, the level of
material support provided through mandatory
social insurance is not high enough and indicates
the need to immediately find ways to improve the
functioning of this system.
Behal (2023) considered crypto-insurance as a
protection tool. The author notes that there are
already mechanisms in the world to insure the
risks of crypto companies, including several
crypto insurance companies that provide
insurance services for cryptocurrency assets and
other risks related to cryptocurrencies. However,
this market is new and not very developed, so
some companies may face problems of receiving
insurance payments in case of risks. In Ukraine,
for example, such a system does not work at all,
and insurance companies do not offer crypto-risk
insurance. In another study, Behal and
Zarazhevska (2023) reviewed European
regulations for crypts. Ukraine is preparing a new
law on virtual assets.
Features of crypto-currency insurance in Ukraine
are considered in the work of Gavrilyuk (2019).
The major opinion of the author is that the
profitability and growth potential of
cryptocurrency capitalization, as well as high
risks, necessitate the development of an
insurance mechanism in the crypto industry. The
development of insurance opportunities
corresponding to the realities of the development
of the digital economy is becoming one of the
essential tasks of both the domestic and global
insurance industry, which allows for the stable
growth of cryptocurrency markets and the digital
economy.
Kryvoshlyk and Shkurchenko (2022)
investigated the types of cryptocurrency
insurance in the world. In particular, it is stated
that the types of insurance include: insurance of
cryptocurrency storage; crime insurance; general
business insurance for cryptocurrencies; and
insurance for decentralized finances. In another
work, Kryvoshlyk and Dymnich (2022)
investigated cryptocurrency insurance under
conditions of legal uncertainty. It was remarked
that the future development of cryptocurrency
insurance depends entirely on the conditions of
legal regulation of the cryptocurrency market in
general in the world and, in particular, in
Ukraine.
In the study of Lytvyn (2023), the main
provisions of the law on the circulation of virtual
assets were analyzed. The author has analyzed in
detail the issue of taxation and the risks of
payments with virtual assets.
Additionally, Makarov & Arzhevitin (2022)
examined virtual assets in the context of
monetary policy. It is noted that the introduction
of the e-hryvnia into circulation as a monetary
policy tool with interest accrual will significantly
strengthen the interest channel of monetary
transmission and contribute to the achievement
of the goals set by the central bank and the
growth of non-inflationary monetization of the
economy. At the same time, the introduction of a
third form of money into circulation would
probably give rise to new risks, which are
proposed to be mitigated by proper
parameterization of the new form of money.
Nagaychuk and Tretyak (2018) analyzed the
possibilities of using blockchain technology in
insurance. It was concluded that the use of
blockchain technology in the field of
organization of service for policyholders will
enable insurers to achieve positive financial
results by reducing costs, primarily liquidation,
and collection, and increase the efficiency of the
company's activities in general. Pavlysh (2022)
drew attention to the fact that insurers began to
refuse clients who have assets on the FTX
exchange.
The question of the future of cryptocurrencies
was investigated by Panfilova (2021). The
conducted research showed that cryptocurrencies
and digital assets will continue to be the subject
of intensive reformative legal regulation, will be
in the field of scientific research and will be
affected by global economic changes.
The object of Poplavskyi (2016) research is
cryptocurrency as an object of economic analysis
in insurance companies. It is concluded that at the
moment the analysis of cryptocurrencies in
insurance companies is not of practical interest in
Ukraine due to the position of the state regulator.
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Shinkarenko, Rogova, and Panivnyk (2018) drew
attention to the peculiarities of regulatory
regulation of cryptocurrencies in foreign
countries. At the current stage of regulatory
development, it can be remarked that there are no
unified standards for the regulation of
cryptocurrencies in any jurisdiction and each
central bank and authorized body is guided by its
approaches: from formal permission or the
application of general principles of regulation in
the field of payments to the complete protection
of such activities.
Finally, Miravalls (2021) and Qureshi (2022)
investigated the issue of virtual currency
insurance and concluded that it is an essential
tool for ensuring business and wallet security.
Therefore, from the above analysis of the
literature, it can be concluded that currently there
are problematic issues regarding the insurance of
virtual assets, in particular, the recognition of
virtual assets as insurable, as well as the
predictability of insurance risks, etc. At the same
time, a number of scientists noted that the use of
blockchain technology in the field of
organization of policyholder service can be
progressive and effective in the activities of an
insurance company. In general, all authors agree
that in today's environment, virtual currency
insurance is an important tool to ensure the
security of businesses and wallets.
Research methodology
To investigate the problematic issues of
insurance of virtual assets, various methods of
scientific research were used.
Legal analysis: By using the method of legal
analysis, the regulatory regulation and legislation
related to insurance of virtual assets was
investigated. In particular, the provisions of
Regulation (EU) 2023/1114 of the European
Parliament and of the Council of 31 May 2023 on
markets in crypto-assets, and amending
Regulations (EU), the Law of Ukraine "On
Virtual Assets"17 and the draft Law on
Amendments were analyzed to the Tax Code of
Ukraine and other legislative acts of Ukraine
regarding the regulation of the turnover of virtual
assets in Ukraine. Overall, the legal analysis
indicates that while there are some regulatory
frameworks in place for virtual assets in Ukraine
and the EU, specific provisions addressing the
insurance of virtual assets may be lacking. There
is a need for further development and refinement
of laws and regulations to ensure adequate
protection for individuals and businesses holding
virtual assets and to facilitate the growth of the
insurance market in this area.
Empirical method: The empirical method made it
possible to conduct several observations on the
change in the attitude of countries to
cryptocurrency and its regulation. Thanks to the
benefit of this research method, it was analyzed
how the position regarding the need to insure
virtual assets is developing. The empirical
findings underscore the dynamic nature of
attitudes towards insuring virtual assets and the
importance of ongoing research and analysis in
shaping regulatory frameworks and industry
practices.
Historical method: The use of the historical
method was reasonable for the study of insurance
of virtual assets, as it allows considering the
evolution of this field at different stages of the
development of technology and the insurance
market. With the help of this method, the stages
of formation and development of insurance of
virtual assets were considered, which types of
virtual assets underwent changes in their
insurance history, and which challenges arose at
different stages were determined. The evolution
of laws and regulations related to the insurance
of virtual assets was also considered.
Determining how the legal environment
influenced the development of the insurance
market and how it adapted to technological
changes. The historical method provided a
comprehensive understanding of the insurance of
virtual assets by contextualizing its development
within broader historical trends and regulatory
frameworks. It shed light on the challenges faced,
the adaptations made, and the trajectory of future
developments in this evolving field.
Logical analysis: Logical research methods for
solving problems and studying particular aspects
of the research object played a significant role in
the research. In particular, the concept analysis
method was used to uncover and clearly define
key terms and concepts related to virtual asset
insurance. This made it possible to clarify the
understanding of the research subject and create
a logical basis for the analysis. The
argumentative analysis method facilitated the
consideration of arguments that support or refute
specific claims regarding virtual asset insurance.
Logical research methods enhanced the rigor and
coherence of the study, enabling researchers to
systematically analyze and interpret the
complexities of virtual asset insurance. By
clarifying key concepts and evaluating
arguments, researchers advanced understanding
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in this area and contributed valuable insights to
the field.
System method: The system method made it
possible to consider the insurance of virtual
assets as a complex phenomenon. Thus, the
interaction of various components of the system
was studied, their structure was determined, and
principal elements were identified.
Analogy method: The analogy method is utilized
to compare the insurance of virtual assets with
known situations. This can help in understanding
the essence of the problem and exploring
possible solutions. For example, an analogy was
drawn between the insurance of real and virtual
assets.
Deduction method: The use of deduction to draw
logical conclusions from general rules or
principles, or the help of induction to draw
general conclusions from specific facts or
examples, has contributed to the comprehensive
investigation of theoretical and practical issues in
cryptocurrency insurance. The combination of
deduction and induction in the investigation of
cryptocurrency insurance facilitated a holistic
and nuanced analysis of both theoretical
frameworks and real-world phenomena. By
employing these logical methods, researchers
were able to generate valuable findings and
recommendations that contribute to the
advancement of knowledge in the field of
cryptocurrency insurance.
Results and discussion
Regarding the features of virtual assets and
their regulation in modern conditions
The emergence and spread of virtual assets are
attracting the attention of researchers around the
world. The use of virtual assets for settlement,
accumulation of capital, and obtaining
speculative profits occurs against the background
of competition with public fiat money. This
creates competition with government fiat money,
breaks the central bank's monopoly on money
issuance, and poses a threat to financial stability.
The issue of regulation of virtual assets is
becoming extremely relevant for our country
since Ukraine occupies a leading place in the
world ranking of countries in possession of
cryptocurrency.
Virtual assets and their circulation determine the
need for insurance as an integral part of the
existence of cryptocurrencies. To minimize
possible losses associated with the instability of
this market, they actively consider insurance as
an effective tool. Among the risks and threats that
can lead to the loss of funds on crypto exchanges,
the following should be considered:
1) Cryptocurrencies are characterized by high
volatility compared to traditional assets.
In this context, insurance can help compensate
for losses associated with sharp price fluctuations
in the cryptocurrency market.
2) Cyber Attacks and Fraud.
Insurance can protect against financial losses in
the event of cyber attacks and fraud.
3) Risks associated with attacks on
infrastructure and supply chains.
Insurance helps in restoration of functioning and
compensation of losses in case of hacker attacks.
4) Security risks associated with password theft
and unauthorized access to accounts.
Insurance can provide protection against
financial loss due to the compromise of personal
accounts.
5) Use for Gambling and Money Laundering:
Insurance can help detect and prevent financial
crimes in the cryptosphere.
Given these risks and the specifics of virtual
assets, insurance can provide the necessary level
of protection and peace of mind for
cryptocurrency market participants. However,
the effectiveness of this tool greatly depends on
proper regulation and recognition of its relevance
to modern challenges in the field of
cryptocurrencies.
Legal provision of insurance of virtual assets
The operation of cryptocurrency exchanges in
most countries is still superficially regulated, and
in some jurisdictions, there is no clear and
transparent regulation at all. Some countries even
ban crypto-assets entirely, but investors still find
ways around these restrictions and carry out
crypto-trading. In such conditions, the question
arises of how to ensure the security of payments,
the integrity of accounts, and the confidentiality
of data. With the intensive development of
technology and the increase in the number of
products on the crypto market, attackers are
actively trying to attack exchanges, wallets, and
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accounts, using methods from password theft to
financial fraud. Every day, the cryptocurrency
sector faces a large number of threats, risks, and
scams, and effective countermeasures are
necessary. One of the possible solutions is the
introduction of crypto insurance. This type of
insurance can provide users, traders, and owners
of crypto exchanges with a certain level of
protection and a sense of security. However, the
successful implementation of crypto-insurance
depends on proper regulation of this sector. Only
clear and effective regulation can ensure trust and
security in this direction (Behal, 2023).
Table 1.
Legal regulation of insurance of virtual assets
Regulatory and legal regulation
Key provisions
Regulation (EU) 2023/1114 of the
European Parliament and of the
Council of 31 May 2023 on markets
in crypto-assets, and amending
Regulations (EU) No 1093/2010
and (EU) No 1095/2010 and
Directives 2013/36/EU and (EU)
2019/1937.
Electronic money tokens (EMTs) – tokens representing electronic money; Asset-referenced tokens (ARTs) – tokens linked to assets; All other crypto assets (including service tokens). What is not included in the scope of regulation: Cash, deposits, financial instruments, securitization (raising funds from the
placement of asset-backed securities), pension payments in the state and
accumulated pension system, insurance products, and virtual assets determined by
individual characteristics (NFT).
Law On virtual assets
The law is aimed at establishing rules for service providers related to the
circulation of virtual assets and determining liability for violations of these rules.
It is based on the current standards of the International Anti-Money Laundering
Group (FATF). It is important to note that the Law does not regulate the taxation
of operations related to virtual assets. The scope of application of the Law is limited to specific legal relationships, in
particular cases when: 1) The parties determined that the law of Ukraine applies to the transaction, the
subject of which is a virtual asset, in whole or in part. 2) Both parties to the transaction relating to the virtual asset are residents of
Ukraine. 3) A person conducting transactions with virtual assets in his own interests
(recipient of the virtual asset) is a resident of Ukraine. 4) In the case of providing services related to the turnover of virtual assets, the
subjects of legal relations must have a registered location or a permanent
representative on the territory of Ukraine. (Law 2074-IX, 2022)
Data provided by Law No. 2074-IX (2022) and European Parliament (2023).
Therefore, from the above analysis (Table 1), the
presence of legal regulation of virtual assets can
be seen. However, this regulation does not apply
to insurance.
In addition, at the beginning of November, a draft
law was registered in the Verkhovna Rada, which
concerns the specifics of taxation of operations
with virtual assets, but does not contain
provisions on insurance19 (Draft Law 10225-1,
2023).
For the implementation of crypto-insurance, a
special legal framework is needed, which would
regulate the activities of insurance companies in
the field of cryptocurrencies and take into
account the interests of insurance companies in
the relevant market segment (Organization for
Security and Cooperation in Europe. (2022)).
It can be reasonably concluded that Ukraine
currently does not have the necessary laws and
by-laws that would determine the provisions on
crypto-insurance. According to experts, the
crypto-insurance market needs further
development and improvement of mechanisms
that would take into account the specifics of the
cryptocurrency business.
On problematic issues of insurance of virtual
assets and ways to solve them
Various approaches and types of insurance are
used to insure clients against the risks of virtual
currencies. For example,
1) Insurance of the storage of virtual assets
(covers losses related to the storage of
cryptocurrencies, which is relevant for
wallets, the passwords to which can be lost
or forgotten – if the owner loses access to his
wallet or cryptographic keys, the insurance
can compensate for the losses).
2) Protection of crypto-key storage (covers the
protection of crypto-key storage, which is
critical for the security of crypto-currency
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assets, so in case of loss or theft of the keys,
the insurance company can compensate the
client).
3) Key recovery and disaster recovery
(insurance can include key recovery and
disaster recovery mechanisms to ensure that
the cryptocurrency owner never loses access
to their assets. This can be important in
situations where a password is forgotten or
other unforeseen circumstances arise
(Allianz Global, 2022).
4) Insurance against company closures and
bankruptcy (if a company that holds
cryptocurrency assets closes or goes
bankrupt, insurance can help compensate for
the loss of customers who trust this
company).
5) Indemnity for losses from cyber attacks
(insurance may cover losses caused by
cyber-attacks, phishing, or other online
threats that may result in loss of assets).
(HCP National Insurance Services, 2022).
These types of insurance can become important
for customers in the world of cryptocurrencies,
where the storage and management of assets
involve unique risks. Insurance products should
be properly designed and regulated to provide
effective customer protection in this dynamic
market segment (Frost, 2022).
Crime insurance can include coverage for claims
by crypto companies for loss of money,
securities, inventory, and digital assets.
General business insurance for cryptocurrencies
can use classic business insurance policies such
as directors and officers insurance and
professional indemnity insurance. These
contracts can be useful for insuring a business's
digital assets and cryptocurrency portfolio.
Directors and officers insurance of crypto
companies can protect them from claims arising
from their actions taken within the scope of their
duties (Risk Management, 2023).
Decentralized finance insurance for
cryptocurrencies, also known as smart contract
insurance, can be an important security element.
Smart contracts are used to automate
transactions, and a DeFi insurance policy can
verify the legitimacy of the software and the
correct execution of transactions according to the
terms of the smart contract. This simplifies the
identification of unforeseen risks and ensures the
safety of participants in the cryptocurrency
environment.
Although there are various types of insurance in
theory, due to the complexity of operating and
regulating assets, in practice many problems
arise due to the peculiarity of the asset's
virtuality.
Risk insurance mechanisms for crypto
companies already exist around the world,
including several crypto insurance companies
that provide insurance services for crypto assets
and other risks related to cryptocurrencies. Since
this market is new and not very developed, some
companies may face difficulties in receiving
insurance payments in case of risks. However,
such a system does not function at all in Ukraine,
and insurance companies do not offer crypto-risk
insurance services.
Ukraine faces challenges in the field of insurance
of virtual assets, but can solve them with the help
of the following measures:
1) Insufficient regulation: The government
should develop and implement relevant
regulations and legislation that will take into
account the specifics of virtual assets and
insurance in this area.
2) Lack of education: Campaigns on the
conscious use of virtual assets and insurance
can increase the level of education among
the population and reduce risks.
3) Cyber Security: Ensuring a high level of
cyber security is important to prevent theft
and cyber attacks that can damage virtual
assets. The government should develop and
maintain cybersecurity standards and
measures.
4) Financial stability of insurers: Insurance
companies must have sufficient resources
and financial stability to indemnify losses
related to the loss of virtual assets.
5) International cooperation: The government
should actively cooperate with international
organizations and other countries to share
experience and best practices in the field of
insurance of virtual assets.
By implementing these measures, Ukraine can
ensure the stability and protection of virtual
assets of its citizens and businesses, which will
contribute to the further development of the
digital economy and the innovation sector.
The results of the study show that virtual asset
insurance is a complex and constantly evolving
issue. There are various types of insurance
available, but the market is still new and
underdeveloped. In Ukraine, there is no specific
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regulatory framework for virtual asset insurance,
which hinders the development of the market.
The findings of this study add to the existing
literature on virtual asset insurance by providing
a comprehensive overview of the current
landscape and identifying the main challenges
facing the market. The study also offers
recommendations for the future development of
the virtual asset insurance market.
Conclusions
1) According to the first task, it was concluded
that virtual assets, such as cryptocurrencies,
digital.
2) tokens, and intellectual property in
electronic form, represent a new class of
assets that differ from traditional material
resources. This is due to their digital nature,
the ability to be anonymous and
decentralized, high volatility, and the
difficulty of determining value. This
necessitates the establishment of new
standards and regulations that will take into
account their unique characteristics.
3) In consonance with the second task
regarding the legal provision of insurance of
virtual assets, it was supposed that the
development of virtual assets requires a clear
and adapted-to-reality legal framework to
ensure the protection of the rights and
interests of the parties in the insurance of
virtual assets. Also, note that the
development of international standards and
cooperation in the field of insurance of
virtual assets can improve the efficiency and
stability of this field at the global level.
4) In line with the third task, the problematic
issues of insurance of virtual assets were
investigated, and the ways of their solution
were considered. It is deduced that the
increase in the number of cyberattacks and
cybercrime aimed at virtual assets can be
avoided with the help of the development of
insurance products to cover losses from
cyber threats, the expansion of cyber
insurance, and the active role of insurance
companies in cyber security. The problem of
uncertainty in the value of virtual assets can
be eliminated by using advanced methods
for assessing the risks and value of virtual
assets, as well as developing digital risk
assessment standards. The lack of insurance
products specifically adapted to the
requirements of virtual assets is being
overcome by the introduction of new
insurance products to cover.
Therefore, insurance of virtual assets is
becoming more and more relevant in the context
of the development of the digital economy.
However, for the proper protection of investors
and users, appropriate regulation of both
insurance procedures and a common
understanding of the definition of "virtual assets"
is necessary.
We believe that for the effective functioning of
insurance of virtual assets and ensuring the
protection of investors and users, it is important
to develop appropriate regulation. In particular, it
is necessary to clearly define in the legislation
that virtual assets are the object of insurance and
what are their legal characteristics. Another
important condition is the standardization of the
terms of insurance policies and the introduction
of licensing requirements for insurance
companies that provide virtual asset insurance
services to ensure their financial stability and
compliance with standards. Another important
aspect is ensuring the systematic monitoring of
the activities of insurance companies in the field
of virtual assets and conducting regular audits to
verify their activities and compliance with
requirements, as well as ensuring the proper
protection of the rights of consumers of insurance
services of virtual assets, including the right to
receive information about insurance conditions
and the dispute resolution process . These
recommendations can form the basis for the
development of effective and safe regulation of
insurance of virtual assets, which will promote
the development of this industry and ensure the
protection of investors and users.Regarding
further scientific research, we consider it
expedient to analyze the international legal
experience of insurance of virtual assets.
Bibliographic references
Allianz Global. (2022). What is D&O Insurance?
Learn more about Directors & Officers
insurance. Retrieved from
https://acortar.link/1fShri
Antoniv, R. (2022). Insurance during the war.
Internet resource. Economic truth. Retrieved
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