December 11, 2018 11:37 PM
The policy will insure hot and cold wallets and all forms of professional indemnity.
The Gibraltar Blockchain Exchange (GBX) will begin providing insurance for digital assets stored on its platform, according to a December 10 announcement on the exchange’s website.
Per the announcement, the GBX has finalized the drafting of an insurance policy in collaboration with Gibraltar-based Callaghan Insurance, which will be responsible for administering the policy.
The policy will insure digital assets listed on the GBX exchange and will cover both cold wallets (stored offline) and hot wallets (stored online). The announcement also states that “the new insurance coverage…covers all forms of professional indemnity.”
For those readers unfamiliar with professional indemnity insurance, it provides insurance coverage for certain professionals who allegedly provide inadequate services to their clients/customers. The insurance covers legal costs and expenses in defending claims such as malpractice, breach of duties, and professional negligence. It is unclear to what extent such coverage will benefit the average customer with digital assets stored on the exchange, and the announcement fails to go into further detail.
The GBX recently obtained full regulatory approval from the Gibraltar Financial Service Commission by receiving a “Distributed Ledger Technology (DLT license).” But, outside the island, it is far from the first financial services company to provide its clients with digital asset insurance.
In August, Reuters reported that cryptocurrency storage platform Kingdom Trust had acquired cryptocurrency insurance coverage through long-established insurance provider Lloyds of London to protect its customers against “theft and destruction of those assets.”
Additionally, in October, the head of risk at Gemini, Yusuf Hussain, announced that the exchange was going to insure funds held in wallets stored online as such wallets were more vulnerable to theft.
(The GBX was unavailable for comment by press time.)
Nathan Graham is a full-time staff writer for ETHNews. He lives in Sparks, Nevada, with his wife, Beth, and dog, Kyia. Nathan has a passion for new technology, grant writing, and short stories. He spends his time rafting the American River, playing video games, and writing.
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