Hong Kong firm OneDegree to offer insurance for Asian Bitcoin (BTC) exchanges
OneDegree virtual insurance agency headquartered in Hong Kong, is planning to offer its services to Asian cryptocurrency companies to help market participants avoid risks.
Insurance policies for crypto assets
OneDegree, the first-ever virtual Asian insurance provider for cryptos, has teamed up with Hong Kong cryptocurrency exchange HKbitEX to protect its ON1ON custody platform. OneDegree has already insured cryptos worth of $100 million (~£75 million), aiming to cover damage from hackers or malware attacks, as well as any fraudulent actions of employees.
OneDegree elaborates technological solutions based on the cybersecurity platform Cymetrics and assists crypto companies in assessing and managing risks. OneDegree co-founder Alvin Kwok stated the demand for crypto insurance and risk management is steadily growing, which boosts investor confidence and contributes to the market’s further development.
“We have witnessed a very strong inbound demand for insurance to protect against threats to digital assets,” Kwok said. “Our unparalleled expertise in insurance, technology and cybersecurity has allowed us to develop more viable risk management solutions in this rapidly evolving industry than traditional insurance providers.”
HKbitEX co-founder Ken Lo claimed he wants additional institutional investment in cryptocurrencies. “With over 1,800 licensed asset managers, Hong Kong is home to over US $3 trillion (~£2.24 trillion) in assets under management. We want to help asset managers enter this market in ways that enable them to also fulfill their fiduciary duties to their end investors,” his statement follows.
Hong Kong watchdogs look into crypto regulation
Hong Kong’s Securities and Futures Commission (SFC) is a statutory body responsible for crypto regulation within the country. SFC Deputy Chief Executive Officer, Julia Leung Fung-yee, announced that laws concerning virtual currencies will soon be reviewed. During the Hong Kong FinTech Week conference in 2021, Fung-yee said that digital assets are getting closer to traditional finance, so the laws need to be updated.
Back in October, the US Federal Deposit Insurance Corporation (FDIC) announced it was looking into insuring stablecoins. In August, Chinese banks reportedly started exploring the digital yuan’s potential in insurance and investment areas.
Crypto market is gaining force and entering its flourishing era, while more serious cybersecurity threats are coming along as well. This creates a perfect space for insurance agencies to take a step forward. One of them, Hong Kong’s OneDegree, is already taking measures to protect cryptos, having collaborated with the exchange HKbitEX. Staying on guard!
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