Bitstamp To Provide Crime Insurance for Crypto Asset Safety
On Thursday, the crime insurance policy became available to the users. It safeguards the offline storage accounts or cold wallets against direct loss and theft. The deal will be arranged by the Llyod’s of London and underwritten by UK crypto specialist broker Paragon International Insurance Brokers and Woodruff-Sawyer & Co.
Traditional institutions typically stay away from cryptocurrency and related products. However, Llyod’s of London, one of the oldest insurance agencies in the world, is working to provide digital asset insurance to the users. Insurance is typically scarce for digital assets held at custodian exchanges. However, the insurance agencies are gradually opening up to the possibility of providing cold storage to the users.
Crypto wallets have been soft targets for hackers who want to access a centralized single point of failure which makes them prone to security issues.
Bitstamp is already providing crypto insurance to its users. It stores 98% of its digital assets with BitGo’s cold storage facilities. This helps prevent against hacks, loss of keys, and insider theft by employees. BitGo provides up to $100 million covers for crypto assets held in their accounts. With the new insurance policy, Bitstamp will be able to provide an extra layer of protection that provides better protection to users in crime-related cases like a loss in transit, loss caused by computer fraud, fund transfer related frauds, employee theft, loss of on-premise assets, and loss related to legal fees and expenses.
Global head of business development at Bitstamp, Miha Grcar commented on the insurance and said, “Introducing an additional crime insurance policy allows us to expand coverage to the assets held at Bitstamp and to protect our customers in a large array of scenarios they may find themselves in.”
BitGo is offering multi-signature technology wallets to users which have become popular among crypto exchanges who demand enterprise-grade custody services.