Future Thinking: Digital Assets Need Standards, Regulation & Cover

It’s a fact that there are thousands of NFTs and crypto currencies out there. IE probably gets about 50 emails per day from PR agencies promoting all manner of digital investment opportunities. Some see it as a goldrush, true freedom from the existing financial system. Others have the feeling this could be the biggest pyramid scheme of all time.

There are moves to restrict the investments that can be made by Joe Public in the UK, as the government and some others worry that people are gambling on NFTs as they would with sports betting or choosing random stocks on eToro. Plus a statement today by the UK govt makes it clear that Crypto and NFT providers will have to be dragged under the FCA umbrella fairly soon. That won’t stop overseas based NFT operations of course, just as BT Call Blocker fails to stop a single nuisance call from anywhere east of Dover.

But there are some NFT Markets which are already compliant with FCA rules and regulations. This can only be a good thing, as insurance brokers may well advise clients to insure their digital assets, or have to pay them out as part of a Life or Illness policy. You may think that is far-fetched, but I can see an argument already involving relatives who feel they didn’t get the most valuable cartoon NFT dog, cat or Twitter meme.

It’s time for the insurance sector to set up a joint working group on NFTs/Crypto, similar to ACORD, whioch sets standards, offers an info resource and works directly with government agencies.

An algorithmically-generated cartoon image of an ape, number 5809 in a set of 10,000 collectible non-fungible tokens (NFTs) called the Bored Ape Yacht Club, made by the U.S.-based company Yuga Labs, in this digital image, 2021. Mandatory credit Courtesy Sotheby?s /via REUTERS

Here’s some news from Enigma Securities.

Enigma Securities LTD and the Makor Group are pleased to announce that Enigma Markets Inc. completed its acquisition of Velocity Platform, LLC, effective November 2021. After rebranding to Enigma Markets, the combined entity will expand Enigma’s regulated digital asset business to 22 US states.

Enigma Securities, a subsidiary of Makor Group, has maintained full digital asset compliance with the FCA since June 6, 2018. Earlier this year, Enigma successfully registered as a Virtual Asset Service Provider with the UK Financial Conduct Authority. With registration in 22 US states, Velocity Platform meets Enigma’s standards of compliance and accountability. Enigma will continue to diligently focus on the the most rigorous standard of compliance and regulatory procedures for all its digital asset clients.

In 2022, Enigma Markets intends to offer its digital asset operations to all 50 states, including New York via the the New York Department of Financial Services. “Velocity’s acquisition shows our determination to grow our US presence while keeping the highest level of compliance said Makor’s CEO and Co-Founder, Michael Halimi.

 

About alastair walker 9648 Articles
20 years experience as a journalist and magazine editor. I'm your contact for press releases, events, news and commercial opportunities at Insurance-Edge.Net

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