Hong Kong company offers insurance for Asian cryptocurrency holdings

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A large Asian insurer has ventured into Bitcoin (BTC) to provide a model for other companies in the space.

Multi-line insurance company OneDegree announced Thursday that it is partnering with Hong Kong Bitcoin Exchange (HKbitEX) to protect its ON1ON custody platform. OneDegree claims to be the first Asia-based digital asset insurance provider to have insured $ 100 million in digital assets under the custody of HKbitEX.

Insurance demand for digital assets will increase, according to OneDegree, and insurance and risk management for digital assets will build investor confidence and help the market develop.

Liability insurance covers physical damage to wallets caused by natural events, cybersecurity risks such as external hacker attacks or malware attacks as well as willful or fraudulent actions by employees.

Following the announcement, HKbitEX co-founder Ken Lo stated that he wanted additional institutional investments in cryptocurrencies. He continued:

“With over 1,800 licensed asset managers, Hong Kong is home to over $ 3 trillion in assets under management.

The company said it is developing more technology solutions to help crypto market participants avoid risk. In addition to the in-house cybersecurity platform Cymetrics, the tools will help customers assess and manage their cyber risk, the company said.

As reported, Hong Kong’s Securities and Futures Commission is currently reviewing the rules for virtual currency transactions, including whether individuals can invest in crypto-related exchange-traded funds.

Hong Kong is one of the most important and prominent financial centers in the world. It had a significant impact on cryptocurrency innovation. For example, the city-state has spawned some of the most famous and successful crypto firms to date, including the cryptocurrency derivatives exchange FTX and the digital asset platform Crypto.com.