The Hong Kong company Onedegree offers insurance for cryptocurrencies -

OneDegree, a virtual insurer based in Hong Kong, will offer insurance services for digital assets as part of a partnership with a local cryptocurrency exchange. Through the collaboration, the two companies hope to remove concerns, which prevent potential investors from getting into the cryptom market.

OneDegree signs insurance policies for crypto-assets

Hong Kong has several licensed providers of virtual insurance services and one of them, OneDegree, now offers HKBitex, a crypto trading platform that works in the global financial center, a cover of up to $ 100 million. The two companies have teamed up to protect the customers entrusted to the stock exchange from risks such as theft and hacking.

According to a report by the South China Morning Post on Thursday, Onedegree is the first insurer to take out insurance policies for crypto-assets in Asia, while only a few companies around the world offer this type of service. The available coverage unveiled the publication, stating industry sources, was estimated at less than $ 1 billion per transaction.

At the same time, "less than 1 percent of companies interested in buying cryptocurrency insurance are entitled to such a cover," emphasizes Becky Tam, Chief Risk Officer from Onedegree. Your company now wants to share its risk management framework and its underwriting standards with others in the industry and with supervisory authorities, so that Krypto Insurance increase offers and attract reinsurers.

The announcement of OneDegree and HKBitex comes according to Bitcoin ( btc ), the cryptocurrency with the greatest market capital, achieved an all-time high (ATH) of over 68.500 Pro coin this week, den Total value of the crypto economy for more than $ 3 trillion. Has a new ATH at $ 69,000. The partners are aimed at institutional investors who are careful due to the risks associated with digital assets.

The co-founder of HKBitex, Ken Lo, noticed that the crypto industry in China's special administration region should now try to win more institutions for crypto-assets. "With over 1,800 licensed asset managers Hong Kong has an administrative assets of over 3 trillion US dollar. fiduciary duties towards their end investors can meet, ”continued the entrepreneur.

dealing with cyber threats was a big problem for crypto companies that were exposed to a number of hacking attacks attacks what leads to the theft of Geldern. "Customers of custody banks and stock exchanges want to reduce their risk profile, and insurance companies are good security against these risks," Murray Wood, Asia boss for financial specialties in the global insurance broker AON. He also found that the supervisory authorities are increasingly considering insurance coverage as a tried and tested method.

The partnership between OneDegree and HKBitex is not the first example of such cooperation. A few years ago, Gibraltar Blockchain Exchange received an insurance policy to cover its digital insurance Callaghan Insurance and in 2019 the crypto wallet service provider Bitgo one secured 100 million dollar policy via Lloyd’s to cover crypto-assets in his custody. In April of this year the New York Digital Investment Group (Nydig) reveals a plan for the development of Bitcoin-based products and services for the global insurance industry.