Hong Kong-headquartered Crypto.com today said it has obtained a policy of as much as $100 million through a global insurance marketplace that covers users’ digital assets held in their accounts with the cryptocurrency and payment platform.
Announced Wednesday, the unnamed insurer will offer a crime insurance product that safeguards the offline storage accounts, known as cold wallets, against theft or direct loss.
Crypto.com, which provides crypto-related Visa cards, wallet and portfolio building services, also revealed new security measures, including two-factor authentication for certain transactions.
The company explained that, as it also offers the MCO Visa card, this move adds an additional layer of security for the user while sending or withdrawing their assets, as well as for wallet address whitelisting.
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Insurers gradually respond to crypto demand
Insurance is scarce for digital assets held at custodians or exchanges, but the insurance industry has gradually responded to demand starting with cover for cold storage.
Cryptocurrency wallets are attractive to hackers as they have a single centralized point of failure, making them prone to the same security issues faced by millions of web applications globally.
While traditional institutions are shying away from cryptocurrencies and related assets, blockchain security firm BitGo obtained insurance coverage from the prestigious Lloyd’s of London, one of the oldest insurance agencies in the world, with centuries of experience in this industry. However, BitGo’s policy offers a wider coverage against hacks, insider theft by employees, and loss of keys needed to unlock the funds.
Founded in 2016, Crypto.com launched its initial coin offering (ICO) in May 2017 after a year working on its offering that includes a range of products aimed at promoting the adoption of cryptocurrencies on a wider scale. The payments and card provider, formerly known as Monaco, also offers customers the option to fund their crypto wallets via EUR bank transfers from accounts in the Single Euro Payments Area (SEPA).