Crypto.com extends its insurance policy
On his twitter accountthe exchange Crypto.com (CRO) announced increased his insurance policy to cover up to $750 million in digital assets.
This initiative brings now extra security for the platform’s ten million users.
The extension of the insurance came into effect on September 6, 2021 and was carried out by “ Arch Underwriting at Lloyd’s Syndicate 2012 “. This last will apply for cold stored assets held by the exchange on Ledger Vault.
The new insurance policy aims to directly and indirectly cover depositaries of the platform. In particular, it offers protection against physical damage, destruction and theft by third parties.
Kris Marszalek, co-founder and CEO of Crypto.com, said:
“We believe that data security and privacy are the foundations for the widespread adoption of cryptocurrencies. Lloyd’s insurance policy renewal will significantly expand security protection for our growing user base. »
This cover is one of the largest in the cryptocurrency sector. Moreover, this extension is not insignificant since it makes it easier to attract institutions or the general public.
“By choosing to partner with Ledger Vault, a service provider known to insurers, Crypto.com was able to not only give policyholders the confidence they needed in their custody security, but also to obtain an insurance policy in a much shorter lead time than usual,” said James Croome, manager at Lloyd’s.
Thereby, consumer protection becomes an important topic within the ecosystem, particularly with regard to the storage and security of cryptocurrencies.
Consequently, the insurance policies which cover digital assets should grow In the coming months. As regulators tighten the screw more and more, exchanges will have to deal with a strengthening of their security standards.
The main objective for the platforms is obviously avoid the potential impact of a hacker attackas KuCoin suffered in September 2020 by losing more than $280 million.
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