Cryptographic insurance debuts in Hong Kong

OneDegree Hong Kong, a licensed multi-line insurer, has entered into an agreement with local digital asset exchange HKbitEX to provide coverage of up to $ 100 million worth of cryptocurrencies, offering coverage for losses that can occur due to malware attacks, theft of employees and bodily harm. OneDegree expects a growing number of insurers to follow suit, which will make it easier to mitigate the risks associated with the volatile asset class.

The absence of insurance coverage has been a major deterrent for wealth managers curious about cryptocurrency in Asia. Despite being a mature market now, the cryptocurrency industry is still rife with hacks and exit scams.



The cryptocurrency insurance market has grown rapidly in the US, benefiting from regulatory clarity. , wider adoption of digital assets and high cryptocurrency prices. In April, Palo Alto-based BitGo expanded insurance capacity for its institutional clients by a whopping $ 600 million amid skyrocketing demand.