Blockchain Deposit Insurance Corporation (“BDIC”), a decentralized cryptocurrency deposit insurer providing coverage for digital assets, today announced the establishment of its Singapore business operations and announced that the BDIC Coin Token Sale is targeted for the first quarter of 2027, and that it has engaged Cole-Frieman & Mallon LLP as outside counsel in the United States
BDIC’s Singapore entity (BDIC SG PTE LTD located on Lorong Ampas in Singapore) is intended to serve as the primary insurance underwriting hub for the company. The company will engage local legal representation and begin the regulatory engagement process for the new insurance entity for approval under the Monetary Authority of Singapore (MAS) and in the meantime, the company plans to place coverage for clients’ needs through existing dedicated insurance cells issued through network partners while awaiting its appointment and approval to write policy coverage directly. During this period, a Cayman Islands BDIC Foundation and its British Virgin Islands subsidiary will be established to issue the BDIC Coin independently of BDIC. BDIC Coin is intended to be used to pay BDIC insurance premiums, settlements, and governance as a true utility payment token.
Why BDIC Singapore?
BDIC selected Singapore as the second location after BDIC HK as it is the intended primary insurance underwriting hub because of the depth of the jurisdiction’s financial regulation and its position in Asian digital asset markets. Asia has moved ahead of much of the world in digital asset adoption and market awareness, and BDIC’s operational strategy is designed to meet the requirements set out by MAS rather than work around them, as Singapore’s leadership and advanced vision on crypto insurance is the perfect platform.
“Establishing our presence in Singapore is more than a geographic expansion from our location in Hong Kong. It is a foundational step in our mission to bring institutional-grade security to the digital asset ecosystem,” said Paul Kohli, Co-Founder and Managing Director, Hong Kong and Pan-Asian Operations of BDIC from the Central District offices in HK. “By working within the MAS framework, we are embedding compliance, solvency, and operational integrity into our global insurance products. As we have engaged local representation and will submit the required information in the coming weeks, we look forward to working with the MAS team for our approval”.
Regulatory and Compliance Architecture
According to BDIC’s compliance team, BDIC is considering partnering with an existing local insurance partner, but it is not required in order to operate under the Insurance Act, administered by MAS. BDIC’s operations are also designed to align with Singapore’s broader digital asset statutes, including the Payment Services Act 2019 (PSA) and the Financial Services and Markets Act 2022 (FSMA), which govern digital payment token services, including custody.
Cross-border insurance carries jurisdiction-specific obligations, and BDIC is structuring its global offering to satisfy local mandates in the jurisdictions where its policyholders reside, but also for global reach. While the Singapore hub is intended to serve as the primary underwriting engine, BDIC intends to serve policyholders in other jurisdictions through structured reinsurance partnerships, risk ceding, or partnerships with admitted local carriers in Europe, for instance. BDIC is also implementing asset valuation protocols that include independent custody verification and cold-to-hot wallet storage ratios consistent with international auditing standards, where applicable.
Chief Risk and Compliance Officer, CRCO Adriano Raimondi, added, “The reason for strict compliance and regulation is to protect consumers, policyholders, and the industry as we forge into the digital asset insurance space. These controls will create the next version of traditional finance, a stable environment in which consumers and businesses alike can operate globally. MAS guidelines are an example of what BDIC wanted as a framework from the start.”
Legal and Infrastructure
BDIC’s CEO centered comments around commitment to building its platform on a properly established legal and compliance foundation. Subsequently, the company has engaged Cole-Frieman & Mallon LLP as outside counsel in the United States moving forward accordingly.