Bitstamp, the European based cryptocurrency exchange, has expanded client protection by rolling out new crime insurance. The newly introduced crime insurance has been underwritten by assorted insurance companies and syndicates at Lloyd’s of London. The insurance is believed to cover a variety of different criminal activities such as employee theft, loss by computer fraud, and others.
Bitstamp Crime Insurance
According to a recent announcement, Bitstamp plans to further protect customer funds by deploying new crime insurance. Bitstamp, the world’s longest operating crypto exchange is taking a pro-active approach for their valued clients. The new insurance policy has been offered by Paragon International, which is underwritten by varied insurance companies and syndicates at Lloyd’s of London. It is important to note that Lloyd’s London is one of the oldest insurance entities, which acts as an intermediary between brokers, clients, underwriters, and insurance companies.
Coverage
According to the announcement, Bitstamp’s new crime insurance will cover criminal related cases pertaining to:
- Employee theft
- Loss of assets while stored at any location
- Loss during transit
- Loss facilitated by computer fraud
- Loss from transfer fraud
- Loss from legal fees and expenses
Jeff Hanson, the Senior Vice President at Paragon International stated that:
“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.”
Additional Insurance On Top Of BitGo
Most of the digital assets transacted by Bitstamp ( ~ 98% ) are held offline at BitGo.
BitGo is one of the leading players in digital asset custody, trading, and finance for institutions. BitGo already offered Bitstamp insurance on client assets, but the new crime insurance is an additional layer for Bitstamp’s 4 million user base. This extra layer of protection encompasses assets in transit, as well as assets that are being held in hot wallets. In an environment where other crypto exchanges still have a difficult time safeguarding client assets, Bitstamp continues to enhance their blockchain security solutions and protections.
Miha Grčar, the Global Head of Business Development at Bitstamp commented:
“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.”
As the crypto markets continue to emerge, Bitstamp is bridging the gap between traditional finance and digital assets, by powering an exchange that is built for investors who value security and oversight. Since 2011, Bitstamp has been building cutting-edge infrastructure that caters to 4 million users worldwide.
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