28. November 2020

Bitstamp says its users are now covered against a wide network of crimes

Crypt coins also need insurance.

The Bitstamp digital asset exchange has strengthened its insurance measures to combat the inherent uncertainties associated with crypto space.

„The policy covers a variety of crime related cases, such as theft of employees, loss while assets are stored at any location, loss in transit, loss caused by computer or funds transfer fraud, and loss related to legal fees and expenses,“ is detailed in an October 15 statement from Bitstamp regarding the company’s updated insurance measures.

Cryptomoney offers additional freedom compared to traditional finance, allowing users to transfer the assets they hold with greater ease and sovereign control. However, these advantages can also make theft more viable. To combat this, several cryptomoney exchanges now have various forms of customer insurance, including Bitcoin Trend App review, with its User Safe Assets Fund, or SAFU for short.

Bitstamp’s new insurance policy is also designed specifically for crypto. It is made possible by the involvement of several players, including UK-based Paragon International Insurance Brokers. „Our crime insurance policy is designed with the specific characteristics of digital assets in mind,“ Paragon senior vice president Jeff Hanson said in the statement, adding

„Traditional insurance policies do not translate directly into digital assets, so we have created and placed a policy that is tailored to the requirements of highly respected and forward-looking exchanges such as Bitstamp, which value the safekeeping of their clients‘ funds above all.“

Bitstamp’s additional coverage is added to the insurance that BitGo, a digital asset trust and security company, provides to the platform. As part of its offering, 98% of Bitstamp’s crypt holdings are securely held offline using the BitGo platform.