Insurance Premium Costs
Insurance premium costs will be calculated by MSIG based on the commission earnings of the exchange. This cost will vary between a few hundred thousand.
Japan’s top bitcoin exchange, bitFlyer, has monthly trades amounting to over 100 billion yen (USD 889 million). Hence, even smaller-scale exchanges would encourage to offer an insurance product.
Mitsui Sumitomo Insurance and Growing Bitcoin Market
The Mt Gox bankruptcy in 2014 has directed bitcoin consumers to inspect the possible vulnerability of exchange employee misconduct. Despite this publicity, the global bitcoin market is growing stronger than ever.
According to Nikkei Asian Review:
“Japanese market research company Seed Planning in August predicted that total bitcoin trades at exchanges that take orders denominated in Japanese yen will quadruple between 2016 and 2017.”
Implementation of the insurance product is a step ahead in providing assurance to customers against the unforeseen dangers of cyber security and free spin casino bitcoin bitcoin online casino bonus.
The’Terms and Conditions’ of reimbursement may differ amongst exchanges, and when claims arise, consumers should do their research beforehand, to prevent disputes.
For instance, whether the reimbursement of losses is paid in bitcoin units or at market value in fiat could make a difference.
Security Knowledge Compliments the Insurance Initiative
Consumers and exchanges must practice security hygiene to minimize damages.
Exchanges should not be utilised as a bitcoin storage wallet. Their bitcoin can be apportioned by consumers according to their use to lessen the possibility of huge losses.
One good practice is to skim through terms and conditions, as for many things, not everything is covered or protected.
After all, safety knowledge as an insurance policy may also be one of the policies.
Share with us your views on how insurance coverage for bitcoin exchanges may benefit customers. We would like to hear from you.
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