The cryptocurrency exchange Bittrex has received $ 300 million in digital property insurance against theft or illegal cooperation for the cryptocurrency it holds in its offline wallets.
The cryptocurrency exchange Bittrex has received $ 300 million in digital property insurance against theft or illegal cooperation for the cryptocurrency it holds in its offline wallets.
Bittrex announced in a blog post on January 29 that the stock exchange received special insurance for corporations from Lloyd’s insurance company in London after cooperating with a chief insurance broker and advisor Marsh. Sarah Downey, co-leader of the Digital Asset Risk Transfer Team, said: "We have worked closely with Bittrex to create a customized insurance solution to suit their specific needs."
This is not the first crypto deal for Lloyd's, since, at the end of August 2018, the company started insuring the crypto custodian Kingdom Trust. In April 2019, the company also started insuring the hot wallets of the crypto exchange Coinbase.
Insurance in the cryptocurrency sector
Bittrex reportedly got the insurance after demonstrating its internal security and compliance protocols. Stock Exchange CEO Bill Shihara explained that insurance is another layer on top of the actual security of the stock exchange that provides an additional guarantee for users.
Securing crypto companies is extremely difficult due to the high risk of managing crypto assets. Earlier this month, CEO Gemini told Cointelegraph that the firm had launched its own insurance company to cover up to $ 200 million in assets for a custody solution.
An article on analysis recently published by Cointelegraph explains that insurance in the cryptocurrency space is a prerequisite for attracting more institutional investors. In the case of Gemini, the new insurance is believed to help the exchange meet the regulatory requirements of institutional clients.
