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The decrease in the volume of cryptocurrencies in the year 2018 made the worst loss in the cryptocurrency sector in general. Recently, resources have reported that Asian cryptocurrency trades and traders are trying to secure against the unforeseen risk of hacks and thefts.
PwC fintech and crypto leader for Asia, Henri Arslanian notes it
"Most institutional encryption companies want to buy adequate insurance and, in many cases, obtaining adequate insurance coverage is a regulatory or legal requirement"
The lack of insurance coverage will be an obstacle to greater "institutionalization"
Since the market is truly unpredictable, this coverage is rather difficult to obtain in the current scenario. However, reports indicate that there are a large number of institutional investors who are keen to invest in the crypto, there are also many other wealth managers who believe in the future of cryptocurrency – so they focus very keenly on the insurance of those assets encrypted by the future hacking or theft.
However, the absence of insurance coverage in this sector is somewhere stopping the greatest innovation in terms of "institutionalization of crypto investments". Hoi Tak Leung, a senior lawyer in Ashurst's digital economy practice, noted on the requirement of institutional investors, said that;
"Institutional investors who are interested in investing in crypto will have various requirements, including reliable reliance and risk management agreements"
There are custody solutions but nothing for the players in the higher end of the market
In addition to ensuring cryptographic assets, unclear regulations are another obstacle that investors are watching. However, it was seen that the encrypted insurance asset would reduce the regulatory concern as such would have helped the cryptographic trading platform to have secured virtual assets that would be the future plan of the Hong Kong SFC. It is reported that the Hong Kong Securities and Future Commission is regulating encryption platforms and therefore requires that their businesses need insurance coverage. In addition, an unnamed broker told Reuters that those platforms that provide insurance coverage are providing it within limited limits. He said that;
"We have not yet found an insurer that will offer sufficiently significant coverage to make it useful," he said.
There are dozens of requests made by insurers on this subject, however, they say "offer coverage". Thomas Cain, regional director and solutions for commercial risk of Aon's Asian financial and professional services, said that this year there were two dozen requests received from the Risk Advisor, in particular from exchanges and crypts-blinds seeking a & # 39; insurance.
Cain emphasized this;
"It is not difficult for insurance companies that hold large amounts of cryptographic assets, but given the novelty of the asset class and the publicity of some of the cryptographic violations received, candidates must make an effort to stand out,"
Although there are a number of custody solutions developed by many cryptographic platforms, this is not something feasible for the high-end player in the market. Tony Gravanis, managing director – investment in the blockchain investment company Kenetic Capital stated that;
"The players in the higher end of the market were also able to get insurance,
Do you really think that cyber-theft can be reduced to cryptography if the activities are insured? Let's discuss.
Summary
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The Asian cryptocurrency industry is committed to ensuring an unexpected risk
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The decrease in the volume of cryptocurrencies in the year 2018 made the worst loss in the cryptocurrency sector in general. Recently, resources have reported that Asian cryptocurrency trades and traders are trying to secure against the unforeseen risk of hacks and thefts.
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tabassum
Publisher name
Coingape
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The content presented may include the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or the publication has no responsibility for personal financial loss.
