Crypto.com Greenlit for Insurance Policy
Crypto.com, a digital currency exchange based in Hong Kong, has revealed they’ve obtained an insurance policy worth $100 Million through an unnamed global insurance provider. This policy allows for clientele’s digital assets to be protected. It’ll also cover lost funds if an attack occurs on the exchange. This announcement was revealed on Wednesday, August 21, 2019. The insurance policy extends to defend the offline storage accounts, cold wallets, consumer theft and direct losses.
New defence protocols are being implemented by Crypto.com, complimenting the new insurance policy. The new two-factor authentication program will safeguard the cryptocurrency Visa Cards, crypto wallets and portfolios. The exchange noted in their announcement that this move guarantees multiple layers of security for clients depositing or withdrawing assets through their website. The MCO Visa Card hasn’t even been safe due to the combined insurance policy and two-factor authentication.
Insurance Institutions Funding Digital Exchanges
The available insurance for digital currency exchanges is limited, leading most firms to maintain custodial services. Meaning private keys and alphanumeric coding defends most crypto exchanges worldwide. However, the insurance industry has begun to meet demands by offer coverage policies. This will help blockchain firms protect themselves against attacks, as private keys and alphanumeric codes are prone to be stolen. This is what led to hacks on exchanges like Binance and Cryptopia.
Most insurance institutions are concerned about cryptocurrencies and digital currencies, which has made policies limited for firms. However, blockchain brokerages like BitGo have been able to receive coverage from banks like “Lloyd’s of London”. This is one of the oldest insurance institutions worldwide, having been first founded in 1686. There’s been no confirmation if Crypto.com received their policy from the same banks. If they did, their coverage towards hacks and insider theft would be significant.
The History of Crypto.com
Crypto.com first became operation in 2016 as a digital currency exchange. Their initial coin offering was listed on May 2017, a year after they opened. During these twelve months, the exchange built their products, which aim at the adoption of wide-scale cryptocurrencies. Today, the firm maintains cryptocurrency credit cards and a small exchange. Furthermore, Crypto.com is one of the few firms that provide clients with the capability to fund wallets through the European Back via the Single Euro Payments Area.