The Central Bank of the United Arab Emirates (UAE) has approved Relm Insurance and Liva Insurance to offer services to crypto-related businesses. Interestingly, the recent regulatory move is a milestone for the country’s digital asset industry. The approval comes after the firms’ partnership to empower innovation across crypto, biotech, and AI sectors.
UAE Greenlights Two Insurance Products
Notably, Relm Insurance, which parades itself as “the only insurer dedicated to emerging sectors,” partnered with Liva Insurance to roll out the products (SIGMAWEB3 and SIGMAWEB3 VARA) approved by the Central Bank.
SIGMAWEB3 and SIGMAWEB3 VARA are designed for crypto firms, including blockchain startups and exchanges. The issuers claim these products protect against financial, professional liability, cyber threats, and crime exposures. They noted that traditional insurers often overlook these areas because they have a vague understanding of the crypto sector.
However, SIGMAWEB3 VARA is tailored to meet Dubai’s Virtual Asset Regulatory Authority (VARA) compliance requirements. The insurers believe the product will enable crypto firms to operate with insurance policies that align with the emirate’s regulatory standards.
The approved products are the first insurance offerings in the UAE designed for the risks associated with the crypto market. Commenting on the recent regulatory development, Joseph Ziolkowski, CEO of Relm Insurance, said:
“Securing Central Bank approval for SIGMAWEB3 and SIGMAWEB3 VARA is a significant step for brokers and clients in the UAE. […] By closing the insurance gap, we’re empowering businesses with the protection they need to innovate confidently in a rapidly evolving market.”
UAE Keeps Making Crypto Moves
The UAE’s crypto-friendly environment is growing, allowing more regional and international crypto firms to expand their services in the Emirates. For example, Stablecoin issuer Tether plans to launch a UAE Dirham-pegged stablecoin to bridge local fiat with global digital assets.
Recently, MGX, a state-owned and Abu Dhabi-based firm, invested $2 billion in Binance, showing its willingness to provide capital and institutional support for crypto projects.
On the other hand, regulatory milestones continue to develop in the UAE due to the region’s crypto-friendly policies, which have attracted several crypto market players. Circle and Ripple have leveraged the regulatory landscape by securing DFSA approval, enabling them to expand their services within the region.
