INSURING CRYPTO
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“ The safer the industry can be made , the more appealing it becomes – although , of course , the appetite for insurance grows as the market cap grows ”
KATHARINE WOOLLER BUSINESS UNIT DIRECTOR , COINCOVER
suggest that insuring assets is an important decision to make . However , it should be considered that the issues surrounding crypto are not necessarily exclusive to crypto – corporate failings , scams and other such problems can equally affect more ‘ standard ’ industries and financial markets , as the recent issues with Silicon Valley Bank showed us .”
Wooller echoes this sentiment : “ The benefits of insurance extend well beyond individual coins ; all digital assets are at risk of hacking , theft and loft access . Many crypto businesses try to ‘ self insure ’ using their own balance sheet – which , of course , is disastrous in the case of hacks , the recent furore around FTX , and , more importantly , the contagion across the whole crypto industry as a case in point .”
As far as crypto is concerned , Wooller feels there is no excuse for firms not to provide their customers with the protections available due to the number of reputable insurance-based products on the market .
What needs to change so more insurers offer crypto policies ? Though there are insurance products for crypto on the market , when will more insurers start to adopt it – or , more pertinently , will they adopt it ?
90 July 2023