Bitstamp, one of the world's largest cryptocurrency exchanges, has introduced an insurance policy that covers the theft and other losses of user funds held on its platform.
- The Europe-based exchange said the new insurance policy will be provided by Paragon International Insurance Brokers in coordination with Woodruff-Sawyer, per a Thursday blog post.
- The underwriters will consist of various insurance companies and certain syndicates from one of the world's oldest insurance markets, Lloyd's of London.
- The policy applies to digital assets, such as bitcoin, that are held at the exchange both on and offline, and covers a number of crime-related circumstances, per the post.
- These include employee theft, loss while the assets are stored at any premise, loss in transit, loss caused by computer fraud or funds transfer fraud, and losses related to legal fees and expenses.
- Bitstamp said 98% of all its digital assets are stored offline, which are already protected by cover from cryptocurrency custodian BitGo.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.