Bitstamp is offering the new policy through specialist insurance brokers, Paragon International Insurance Brokers, with support from Woodruff Sawyer
Cryptocurrency exchange Bitstamp has expanded its insurance offering to the customers with the launch of a new crime insurance policy.
The company is offering the new crime insurance policy through specialist insurance brokers, Paragon International Insurance Brokers, with support from Woodruff Sawyer, and underwritten by several insurance firms and syndicates at Lloyd’s of London.
Bitstamp said that the policy covers a range of crime-related cases, including employee theft, loss when assets are stored or during transit, loss due to computer fraud or fraud related to funds transfer, and loss related to legal fees and expenses.
Paragon senior vice president Jeff Hanson said: “Our crime insurance policy is designed with the specifics of digital assets in mind.
“Traditional insurance policies do not translate directly into digital assets, which is why we’ve created and placed a policy to fit the bespoke requirements of highly respected and forward-looking exchanges such as Bitstamp, which value the safe custody of their customers’ funds above all else.”
Bitstamp to enhance protection for digital assets through new insurance coverage
Bitstamp stores 98% of its digital assets offline with support from institutional digital asset storage solutions provider BitG. The offline assets have already been insured by BitGo’s own insurance policy.
The new crime insurance policy added to Bitstamp’s existing coverage would enable the company to provide enhanced protection for the assets it is managing on behalf of customers, including assets in transit and assets held in its hot wallets.
Also, the new insurance coverage is expected to help the cryptocurrency exchange to strengthen the connection between crypto and traditional finance.
Bitstamp business development global head Miha Grčar said: “Custody and insurance are one of the most crucial and quickly developing areas in crypto right now.
“Introducing an additional crime insurance policy allows us to expand coverage to the assets held at Bitstamp and to protect our customers in a large array of scenarios they may find themselves in.”
Established in 2011, Bitstamp has been serving investors, traders and leading financial institutions. The company is focused on providing blockchain security solutions including cold storage and MultiSig wallets.