Seely tells us : “ This will depend on what type of customer is being targeted . A standard business that accepts cryptocurrency as a form of payment from customers or suppliers may only have need of a policy that provides protection in the event of any theft of their assets , in the same way that it may provide protection for theft of cash . In such cases , an insurance offering can likely be provided more easily .
“ For more sophisticated crypto-focused businesses or markets , the demands and needs may be much more complex , requiring more bespoke policies . In such cases , these businesses will likely need to ensure that they have a sufficiently thorough business plan , setting out their long-term business proposals in detail to allow insurers to make an informed view on the potential risk and provide appropriate terms .”
As a result , Seely feels the crypto industry “ needs to make sure that it is not focusing solely ‘ on the tech ’ but is also producing a more ‘ complete ’ business package that can deal with matters such as business planning , insurance and compliance ”. She goes on to state that “ businesses such as these will inevitably appear more favourable to insurers and help provide insurers the comfort they need to be willing to provide appropriate policies to allow the industry to flourish ”. Wooller calls it a “ chicken and egg ” situation : “ 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 .
“ More importantly , the crypto industry needs to appreciate that the more we can grow trust in the ecosystem , the healthier the prices will look ; a flywheel to mass adoption cannot be ignored .”
Whether mass adoption occurs at some point in the future remains to be seen , although if it does , the complexities and nuances of crypto business insurance will likely need to be ironed out – particularly if firms are soon to be required to insure their products as well as consumers needing to ensure their cryptoassets .
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