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Checklist · Article 67

Article 67 own funds vs insurance

For a CASP, Article 67 is not a binary “buy insurance or hold capital” decision. The useful comparison is whether the firm can evidence a credible capital buffer, risk transfer, comparable guarantee, or mixed path for its actual services and operating model.

The decision frame

Article 67 allows prudential safeguards to be maintained through own funds, a qualifying insurance policy, a comparable guarantee, or a combination. CASPs should treat the choice as an evidence and operating-risk question, not as a shortcut around supervisory or market review.

The practical task is to explain which risks remain on the balance sheet, which risks may be transferred or guaranteed, and what documentation supports that position.

Comparison checklist

Own funds

Clarify permanent minimum capital, fixed-overhead calculations, projected overheads for new applicants, and whether reserves are available for operational losses.

Insurance

Map policy term, cancellation notice, Union-territory coverage, public-disclosure duties, risk categories, exclusions, limits, retentions, and claims handling.

Comparable guarantee

Identify the guarantor, legal enforceability, scope, duration, cancellation mechanics, and how the guarantee responds to Article 67 risk areas.

Mixed path

Show how own funds, insurance, and guarantees work together rather than double-counting the same protection or leaving a gap between them.

Questions to answer before asking for terms

  • Which crypto-asset services are in scope, and which jurisdictions are being served?
  • Does the model include custody, control of means of access, client funds, outsourcing, or critical technology dependencies?
  • What evidence supports governance, business-continuity, cyber, confidentiality, conflicts, and client-treatment controls?
  • How would Article 75 custody liability feed into the Article 67 insurance risk categories?
  • Which gaps should be fixed operationally before a broker, insurer, counsel, or supervisor reviews the file?

Useful next pages

CASP insurance evidence pack

Organize service scope, custody exposure, control evidence, incident history, and application narrative before a market conversation.

Article 75 custody liability

Connect custody duties, asset-return obligations, client-position records, and loss-risk controls to the Article 67 risk-transfer discussion.