Victor Ugochukwu · Dec 14, 2020 . 5min read
Bitstamp includes crime insurance to safeguard digital assets
Bitstamp has introduced an additional layer of insurance, enabling the safety of digital assets. It will protect offline storage accounts.
By Komal Joshi · Oct 16, 2020 . 5min read
Bitstamp, the world’s largest cryptocurrency exchange, announced they had expanded the insurance provided to their consumers with a supplementary crime insurance policy. Bitstamp has acquired an additional insurance policy through a global marketplace to protect digital assets held at Bitstamp. It supports investors, traders, and leading financial institutions since 2011. It’s a safe and reliable trading venue is conferred by over four million consumers globally.
As per the blog post, the insurer will provide a crime insurance product that safeguards the offline storage accounts, identified as cold wallets, against theft or direct loss. Moreover, Bitstamp described the underwriters included in brokering the deal. Paragon International Insurance Brokers, the UK crypto specialist broker and Woodruff-Sawyer & Co. provided the insurance policy from Lloyd’s of London.
While conventional institutions are shying away from cryptocurrencies and other assets, numerous firms are operating in digital asset space. This led to obtaining its insurance coverage from the prestigious Lloyd’s of London. It is among the world’s oldest insurance agencies. Additionally, it has decades of experience in this industry. Moreover, insurance is uncommon for digital assets held at custodians or exchanges. However, the insurance industry has continuously responded to the demand, beginning with insurance cover for cold storage.
Bitstamp stores 98% digital assets with BitGo
For the uninformed, Bitstamp already stores 98% of its digital assets offline with BitGo. This secures its wallets against hacks, insider embezzlement by employees, and destruction of keys required to unlock the funds. Moreover, BitGo’s policy already insured these offline assets.
However, with the new crime policy extending this existing coverage, Bitstamp now provides an improved protection level for the assets it governs on behalf of around four million customers globally. It includes employee theft, loss in transit, loss while the assets are at any premises, loss due to computer fraud or funds transfer fraud, and loss related to legal fees and expenses.
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