The Hong Kong market has introduced Asia’s first cryptocurrency insurance product. Virtual insurer OneDegree partners with crypto exchange HKbitEX to cover crypto and NFTs!
According to OneDegree, the insurance covers physical damage on hardware wallets due to natural events, cybersecurity threats such as hacking, and employee theft.
Thereby, the crypto platform can provide crypto insurance services to its clients. The insurance premiums would be based on the level of risk.
Moreover, OneDegree can provide services including: incident investigation, reputation and public relation services.
Crypto Insurance Excludes Smart Contract Risk?
Additionally, OneDegree’s crypto insurance has the following exclusions: normal wear and tear of physical wallets, smart contract risks, as well as negligence or director and key management fraud.
OneDegree will insure HKbitEX against theft and the hacking of crypto put in its custody by clients.
HKbitEX plans to launch its crypto custodian ON1ON as soon as the end of this year. OneDegree will offer up to $100 million in coverage to HKbitEX.
“Investors are most worried about the loss of digital assets and hacking,” said Ken Lo, HKbitEX’s co-founder. “With digital asset insurance, the platform attracts more traditional funds and family offices to enter the crypto market.
Previously, Hong Kong’s securities regulator SFC announced it would launch a compulsory licensing scheme to regulate crypto exchanges. For crypto exchanges offering security token offering (STO) service, they need to obtain the following licenses: Type 1 – Dealing in securities, and Type 7 – Providing automated trading services.
Pending launch, HKbitEX has applied for licenses from SFC. The market expects HKbitEX to obtain the licenses in the second half of this year.
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