Bitstamp will insure clients’ cryptocurrency against unforeseen circumstances
CONTENT

  • Bitstamp reports on insurance of custom assets

  • The policy covers incidents not only in the digital space, but also in the event of missing hardware wallets

  • Strengthening capital security comes amid incidents around crypto exchanges

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Bitstamp has announced a new method of safeguarding client assets with a special insurance policy

Cryptocurrency exchange Bitstamp has introduced an additional layer of protection for digital assets with an emergency insurance policy. The crypto exchange announced this on its official website..

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Bitstamp will insure cryptocurrency ...

According to the official announcement, the policy is provided by Paragon International Insurance Brokers in cooperation with Woodruff Sawyer and signed by various insurance giants, including Lloyd’s of London. The insurance covers both assets stored in digital and hardware wallets.

“We store about 98% of all digital assets offline, which are protected by BitGo’s insurance policy. Now Bitstamp assets are protected even when they are stored on the network or during transportation, in a wide range of scenarios, “the exchange said..

Bitstamp will insure cryptocurrency ...

Customer confidence

The addition of insurance policies occurs a month after the crypto exchange moved from the UK to Luxembourg due to regulatory requirements.

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It is worth noting that the issue of the security of user clients has escalated amid a series of incidents that occurred around cryptocurrency exchanges earlier in October..

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At first, the potential arrest of the two founders of BitMEX almost put the funds of exchange users in limbo, as soon the OKEx cryptocurrency exchange froze the withdrawal of cryptocurrencies against the background of the arrest of the exchange founder.

Human factor

However, the issue of the safety of user capital extends not only to cryptocurrency exchanges, but also to many decentralized finance protocols (DeFi) Decentralized finance (DeFi) is a financial services built on the basis of blockchain technology that offer users access to an open, efficient and … More ). For example, the BeInCrypto editorial staff previously wrote that Cream Finance’s DeFi platform was in danger of collapse due to the excessive number of tokens pledged.

However, not everyone believes that the risks of losing investments should repel from entering the cryptocurrency market. Anthony Trenchev, co-founder and head of the cryptocurrency lending platform Nexo, previously stated that the greatest risk is not so much the likelihood of losing funds as the threat of being left behind and missing out on new profitable opportunities..

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