Bitstamp Rolls Out New Crime Insurance Policy to Protect Cryptocurrencies Held on the Exchange
Bitstamp, one of the leading crypto exchanges based in Europe, has introduced a new insurance policy against online crypto thefts and other crimes for digital assets held online.
The insurance policy comes in the wake of several exchange hacks leading to the theft of millions worth of digital assets. Most of these exchanges fail to ensure the proper refurbishment for the loss incurred by the exchange users. Thus, this insurance policy initiative by the Bitstamp exchange could prove to be a great attraction for customers.
Paragon International Insurance Brokers would offer Bitstamp's new insurance policy in association with Woodruff-Sawyer. The insurance policy would be applicable for several digital assets like bitcoin and other similar crypto-assets.
The policy would cover several crimes such as online theft, hack, employee theft, loss of assets while under the custody of the exchange, loss in transit, loss caused by computer fraud, and losses related to legal fees and expenses.
Bitstamp revealed that 98% of all the digital assets under its custody are held offline and are protected and covered by the crypto custodian BitGo. Thus, the current insurance policy would focus on assets held online, even though it meant covering both online and offline.