Our synopsis:
Countries around the world tightly control its finance sector through stringent regulations. Besides, the commercial banks, merchant banks, hire purchase companies, leasing companies and others of similar category, the insurance industry consisting of insurance companies, insurance brokers, agents and reinsurance companies also fall within this category of finance sector.
To set up an insurance company or related businesses in these countries you will need to obtain licenses from the authorities.
Licenses are issued only to entities that can show that they have met with the requirements under the regulations which, among others, requires professional management and capital requirements.
The article being shared here, lists out decentralized organizations offering Defi Insurance. As we couldn't not find any evidence of these organization having obtained licenses to operate insurance business, we presume that none of these organizations have the approval of authorities or the required licenses under the respective jurisdictions to offer these insurance products.
Governments around the world are already working on their regulatory framework to regulate cryptocurrencies and decentralized organizations. Although these regulations will not be in place anytime soon, eventually they will and it is assumed that on or about 2024 the regulations would come into force.
What would happen to these Defi Insurance organizations and the investments in them and their investors when these regulation come into force is anyone guess.
Check out the original article here:
https://bitcoinist.com/top-decentralized-insurance-for-defi-investors-in-2021/
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