CRYPTOCURRENCY INSURANCE IN TERMS OF LEGAL UNCERTAINTY
Abstract
The article analyses the problems and prospects of cryptocurrency insurance in terms of legal uncertainty. It has been established that with the growing popularity of the cryptocurrency market, there has been a demand for cryptocurrency assets insurance. This is because the rising value of bitcoin and other cryptocurrencies has led to massive theft of online wallets and funds on crypto exchanges. For several years in a row, certain insurance companies in the USA and Europe have carried out the insurance of cryptocurrencies and crypto exchanges themselves. Instead, there are no programs in Ukraine under which crypto assets could be insured. This is due to the fact that in our country there is currently no legislative framework that would regulate the sphere of cryptocurrency. It is clarified that the development of cryptocurrency insurance is constrained by a number of factors and problems that require their understanding and solution. Therefore, the scientific study and interpretation of the processes that occur in the cryptocurrency insurance segment is of particular importance. It has been determined that the core researches of leading scientists are conducted to determine the essence of cryptocurrency and the possibilities of its use, and the issues and problems of cryptocurrency insurance are considered by very few authors. The lack of a holistic and scientific-methodological substantiation of the mechanisms for the implementation of cryptocurrency insurance and the identification of the constituent factors influencing this process determines the need and relevance of a systematic study of this problem. Based on the analysis of scientific sources, the main approaches to the regulation of the cryptocurrency market in foreign countries and in Ukraine have been identified. The risks of using cryptocurrency in the modern economy and the possibility of their insurance are described. The essence of cryptocurrency insurance is revealed. The approaches to the main ways of participation of insurance and reinsurance companies in the field of cryptocurrencies in the world practice are defined. The main trends in the development of cryptocurrency insurance in the world and in Ukraine have been identified. The benefits for insurers in participating in cryptocurrency insurance are highlighted and the factors that hinder its development have been disclosed.
References
Miravalls Н. Cryptocurrency and insurance. 2021. URL: https://oxbowpartners.com/blog/cryptocurrency-and-insurance/
Полчанов А. Ю. Особливості розвитку страхування в умовах поширення Інтернету. Вісник ЖДТУ. Серія: Економічні науки. 2015. № 1. С. 256–261. URL: http://nbuv.gov.ua/UJRN/Vzhdtu_econ_2015_1_38
Поплавський О. О. Криптовалюта як об’єкт економічного аналізу в страхових компаніях. Вісник Житомирського державного технологічного університету. Серія : Економічні науки. 2016. № 4. С. 178–184. URL: http://nbuv.gov.ua/UJRN/Vzhdtu_econ_2016_4_21 (дата звернення: 27.10.2021).
Нагайчук Н. Г., Третяк Н.М. Можливості використання технології blockchain у страхуванні. Науковий вісник Ужгородського національного університету. Серія : Міжнародні економічні відносини та світове господарство. 2018. Вип. 19(2). С. 104–108. URL: http://nbuv.gov.ua/UJRN/Nvuumevcg_2018_19(2)__24
Qureshi M. What is crypto insurance, how does it work, and do you need it? June 18, 2022. URL: https://indianexpress.com/article/technology/crypto/what-is-crypto-insurance-how-does-it-work-and-do-you-need-it-7963971/
When Clients Take the Lead. Zakrzewski А., Carrubba J., Frankle D, Hardie A., Kahlich M, Kessler D., Montgomery H., Palmisani E., Shipton O., Soysal A., Tang T., Xavier A. Global Wealth 2021. URL: https://web-assets.bcg.com/d4/47/64895c544486a7411b06ba4099f2/bcg-global-wealth-2021-jun-2021.pdf
Чи виживе криптовалюта і чого чекати на ринку в найближчому майбутньому. Агенція інформації та аналітики. Економіка. 10 листопада, 2022. URL: https://galinfo.com.ua/news/chy_vyzhyve_kryptovalyuta_i_chogo_chekaty_na_rynku_v_nayblyzhchomu_maybutnomu_391734.html
The 2022 Global Crypto Adoption Index: Emerging Markets Lead in Grassroots Adoption, China Remains Active Despite Ban, and Crypto Fundamentals Appear Healthy. September 14, 2022 URL: https://blog.chainalysis.com/reports/2022-global-crypto-adoption-index/
Challenges Facing Cryptocurrency Insurance. Risk Management. URL: https://www.managementstudyguide.com/challenges-facing-cryptocurrency-insurance.htm
Павлиш О. Страховики почали відмовляти клієнтам, які мають активи на біржі FTX – Reuters. Економічна правда. 19 грудня 2022 р. URL: https://www.epravda.com.ua/news/2022/12/19/695179/
Спільна заява фінансових регуляторів щодо статусу криптовалют в Україні. Національний банк України 30 лист. 2017. URL: https://bank.gov.ua/ua/news/all/spilna-zayava-finansovih-regulyatoriv-schodo-statusu-kriptovalyut-v-ukrayini
Про віртуальні активи: Закон України від 17.02.2022 № 2074-IX. URL: https://zakon.rada.gov.ua/laws/show/2074-20#Text
Crypto insurance – how the market is expanding. Jen Frost. Іnsurance Business America. 30 May 2022. URL: https://www.insurancebusinessmag.com/us/news/technology/crypto-insurance--how-the-market-is-expanding-407783.aspx
Cryptocurrency Insurance for Businesses. HCP National Insurance Services, Inc. 2022. URL: https://hcpnational.com/cryptocurrency-insurance-for-businesses/
D&O insurance explained. Allianz Global. June 2022. URL: https://www.agcs.allianz.com/news-and-insights/expert-risk-articles/d-o-insurance-explained.html
Кривошлик Т.Д., Шкурченко А.В. Види страхування криптовалюти у світі / The IХ International Scientific and Practical Conference «Promising ways of solving scientific problems», 2022. December 26 – 28, Belgium, Brussels. 235 p. С. 44–45. URL: https://eu-conf.com/wp-content/uploads/2022/12/Promising-ways-of-solving-scientific-problems.pdf
Miravalls Н. Cryptocurrency and insurance (2021). Available at: https://oxbowpartners.com/blog/cryptocurrency-and-insurance/ [in Ukrainian]
Polchanov, A. Ju. (2015), Osoblyvosti rozvytku strahuvannja v umovah poshyrennja Internetu, Visnyk ZSTU. Serija: Ekonomichni nauky, vol. 1, pp. 256–261. Available at: http://nbuv.gov.ua/UJRN/Vzhdtu_econ_2015_1_38 [in Ukrainian]
Poplavsky O. (2016). Kryptovalyuta yak obʺyekt ekonomichnoho analizu v strakhovykh kompaniyakh [Cryptocurrency as an object of economic analysis in insurance companies]. Bulletin of the Zhytomyr State University of Technology – Bulletin of the Zhytomyr State University of Technology, vol. 4, pp. 178–184. Available at: http://nbuv.gov.ua/UJRN/Vzhdtu_econ_2016_4_21 [in Ukrainian]
Nagaichuk N. G., & Tretiak N. М. (2018). Mozhlyvosti vykorystannya tekhnolohiyi blockchain u strakhuvanni [Possibilities for the use of blockchain technology in insurance]. Naukovyy visnyk Uzhhorodsʹkoho natsionalʹnoho universytetu – Scientific Bulletin of the Uzhhorod National University, vol. 19(2), рр. 104–108. Available at: http://nbuv.gov.ua/UJRN/Nvuumevcg_2018_19(2)__24. [in Ukrainian]
Qureshi M. (2022). What is crypto insurance, how does it work, and do you need it? Available at: https://indianexpress.com/article/technology/crypto/what-is-crypto-insurance-how-does-it-work-and-do-you-need-it-7963971/
When Clients Take the Lead. (2021). Zakrzewski А., Carrubba J., Frankle D, Hardie A., Kahlich M, Kessler D., Montgomery H., Palmisani E., Shipton O., Soysal A., Tang T., Xavier A. Global Wealth. Available at: https://web-assets.bcg.com/d4/47/64895c544486a7411b06ba4099f2/bcg-global-wealth-2021-jun-2021.pdf
Chy vyzhyve kryptovalyuta i choho chekaty na rynku v nayblyzhchomu maybutnʹomu. (2022). [Will cryptocurrency survive and what to expect on the market in the near future]. Ahentsiya informatsiyi ta analityky. Ekonomika – Information and Analytics Agency. Economy. November 10. Available at: https://galinfo.com.ua/news/chy_vyzhyve_kryptovalyuta_i_chogo_chekaty_na_rynku_v_nayblyzhchomu_maybutnomu_391734.html [in Ukrainian]
The 2022 Global Crypto Adoption Index: Emerging Markets Lead in Grassroots Adoption, China Remains Active Despite Ban, and Crypto Fundamentals Appear Healthy. (2022). Chainalysis Inc. September 14. Available at: https://blog.chainalysis.com/reports/2022-global-crypto-adoption-index/
Challenges Facing Cryptocurrency Insurance. Risk Management. Available at: https://www.managementstudyguide.com/challenges-facing-cryptocurrency-insurance.htm
Pavlysh O. (2022). Strakhovyky pochaly vidmovlyaty kliyentam, yaki mayutʹ aktyvy na birzhi FTX – Reuters [Insurers began to refuse clients who have assets on the FTX exchange – Reuters]. Ekonomichna pravda – Economic truth. December 19. Available at: https://www.epravda.com.ua/news/2022/12/19/695179/ [in Ukrainian]
Spilʹna zayava finansovykh rehulyatoriv shchodo statusu kryptovalyut v Ukrayini (2017). [Joint statement of financial regulators regarding the status of cryptocurrencies in Ukraine]. Natsionalʹnyy bank Ukrayiny – National Bank of Ukraine, November 30. Available at: https://bank.gov.ua/ua/news/all/spilna-zayava-finansovih-regulyatoriv-schodo-statusu-kriptovalyut-v-ukrayini [in Ukrainian]
Zakon Ukrayiny Pro virtualʹni aktyvy [Law of Ukraine On Virtual Assets] № 2074-IX (2022). [online] Available at: https://zakon.rada.gov.ua/laws/show/2074-20#Text [in Ukrainian]
Crypto insurance – how the market is expanding. (2022). Jen Frost. Іnsurance Business America. May 30. Available at: https://www.insurancebusinessmag.com/us/news/technology/crypto-insurance--how-the-market-is-expanding-407783.aspx
Cryptocurrency Insurance for Businesses. (2022). HCP National Insurance Services, Inc. Available at: https://hcpnational.com/cryptocurrency-insurance-for-businesses/
D&O insurance explained (2022). Allianz Global. June. Available at: https://www.agcs.allianz.com/news-and-insights/expert-risk-articles/d-o-insurance-explained.html
Kryvoshlyk T. D., Shkurchenko A. V. (2022). Vydy strakhuvannya kryptovalyuty u sviti [Types of cryptocurrency insurance in the world]. The IХ International Scientific and Practical Conference «Promising ways of solving scientific problems», December 26 – 28, Belgium, Brussels, рр. 44–45. Available at: https://eu-conf.com/wp-content/uploads/2022/12/Promising-ways-of-solving-scientific-problems.pdf [in Ukrainian]
