Crypto Exchanges are finding it Hard to buy Insurance

At present cryptocurrency exchanges are having a difficult time gaining an insurance policy because of security problems and countless cyberheists
27 June 2018   1626

As claimed by Business Korea, cryptocurrency exchanges are now in negotiations with insurance firms. The Korean Blockchain Association is having a conversation with Hyundai Marine & Fire Insurance Co. and Hanwha General Insurance Co. in order to understand how crypto exchanges can take out an insurance policy. The Korean Blockchain Association has been conducting the negotiations on behalf of their member cryptocurrency exchanges since April 2018. The Association aimed to choose a definite insurer that its members can acquire insurance from. Insurance firms have been extremely reluctant and hesitant to insure cryptocurrency exchanges because of security issues and insufficient credibility.

Firstly, the association considered it an excellent possibility for both parties if one insurer could secure many cryptocurrency exchanges in one go. They initially hosted an event to brief insurance firms and let the members to select their preferred insurer. After the Bithumb hack happened recently, insurance companies have become more unwilling and uncooperative, especially since the damages were worth approximately $31.46 million.

The Korea Blockchain Association emphasized a stronger internal control system and security at the earlier sessions. But we cannot trust it as even the largest cryptocurrency exchange in South Korea was exposed to cyber attacks. There are no statistics related to the risks of virtual currencies both at home and abroad and it is still not sure whether an insurer can accept exchanges as its policyholders as a group, which are smaller and riskier than Bithumb.
Official
The Korean Blockchain Association

Business Korea proposed that insurance organizations could compensate their risk by working with reinsurance companies, the structures that provide insurance for insurers, when the insurance companies decide choose not to work with crypto exchanges. The problem is reinsurance companies might not decide to insure the insurance firm if they cannot trust the level of security from cryptocurrency exchanges.

When insurance companies can increase premiums for cryptocurrency exchanges and enforce greater security measures, the question is, how efficient are the insurances? The present limit of liabilities when it comes to insurance for crypto exchanges is approximately $2.7 million to $4.49 million. Reuters informed in February 2018 that many insurers were not yet convinced the cryptocurrency industry would be large enough for premiums to cover potential losses. According to CoinMarketCap, the cryptocurrency industry’s total market capitalization was approximately $500 billion.

Diffusion 2019 to Gather Crypto Hackers in Berlin

World most interesting tokenised protocol teams joined forces to create one of the biggest devconf in the world
20 September 2019   253

19th-20th October 2019, Berlin, one of the IT capitals of the world, will gather representatives of blockchain, AI, IoT and Big Data industries across the globe. 350 developers are going to test their skills, by hacking with 25m+ lines of open source code. Thousand of prizes awaits the winners.

This two-day event will focus on the practical application of open-source distributed ledger technology, smart contracts, machine learning and programmable tokens, to create a new data layer.
 

Diffusion

Diffusion 2019 Attendants
Diffusion 2019 Attendants

The conference will last for two days and is focused on the practical usage of open-source blockchain technology, machine learning, programmable tokens and smart contracts with a goal to create a new data layer. 

If you are not a skilled programmer, you will find what to do, Join panels, chats, workshops. Discuss the latest topics, such as token economics, blockchain for enterprise, AI, deep learning and more. Whether you are a dev, work in IT or tech industry, geek or just interested all that new - this is a place for you. You will be able to discuss things and share knowledge with lead developers, professors, start-upers and CEOs.

Part of Diffusion 2019 Attendants
Part of Diffusion 2019 Attendants

The event will take place at the Factory Berlin.

Hype.Codes team is happy to report that our journalist is going to the Diffusion 2019 too! Anton will provide you, our dear readers, with the freshest news and announces straight from the Factory.

Also, check out the latest conference's partnership with ETHBerlin.

And now the most interesting thing. You will be able to to take part in a hackathon for free!

Apply for free place at Hackaton now!

Not a coder, but still want to attend an event? 

Get your ticket here!