GLOBAL EXPERIENCE IN DEVELOPING INSURANCE PROTECTION SYSTEMS FOR DIGITAL ASSETS

Abstract

This article examines the concept of “digital assets,” specifically highlighting legal, economic, technological, and innovative conceptual aspects. It also explores regulatory, innovative, and experimental approaches drawn from international experience in the development of digital assets. The study of global experience in developing a system of insurance protection for digital assets is relevant to the extent of the development of digital technologies and digital assets, which give rise to risks. Particular attention is paid to examining global experience in developing a system of insurance protection for digital assets in a number of countries and leading companies. The main research methods employed were analysis, comparison, grouping, and the historical method. The paper identifies directions for the development of insurance in the digital assets sector, highlighting the need for development based on the reality of losses resulting from various risks (hacking, theft) and the growing insurance potential of the digital assets market. It is concluded that as the digital asset ecosystem evolves, hybrid models combining traditional underwriting with decentralized verification will define the next generation of insurance innovations. Amid increasing regulatory scrutiny, robust security and specialized insurance are becoming the foundation of operational resilience. It has also been established that the key risks in the digital asset sector include cyber threats, loss of private keys, fraudulent schemes, technical failures, and market volatility. This necessitates the development of specialized insurance products tailored to the digital environment. Such products include cyber risk insurance, liability insurance for crypto platform operators, and DeFi insurance for smart contracts. It is also important to develop insurance for risks associated with the tokenization of assets and the use of decentralized financial services. It has been established that international practice demonstrates the growing role of insurance companies in building trust in the digital asset market.