When it comes to regulation and necessities like banking, crypto entrepreneurs haven’t always had the easiest time.
Recently, I’ve discovered some of my crypto clients are having trouble obtaining an important business planning tool: directors and officers (D&O) liability insurance. In my opinion, as I’ll explain, a combination of COVID-19 “event-driven” litigation, crypto regulatory uncertainty and a misunderstanding of crypto on the part of some in the insurance industry, is making it difficult for crypto entrepreneurs to secure an important service.
Matthew Burgoyne is a corporate and securities law partner at McLeod Law LLP in Calgary, Alberta. He has advised clients in the cryptocurrency space since 2013 and is chair of McLeod Law’s cryptocurrency and blockchain group.
Many countries, including the U.S., impose a fiduciary duty on directors and/or executive officers that they owe either to the shareholders or to the corporation. Depending on the jurisdiction, the law may impose a “duty