Asia’s largest insurer has entered the Bitcoin (BTC) market in an effort to set a model for other businesses in the field.
OneDegree, a multi-line insurer, announced on Thursday that it is partnering with Hong Kong Bitcoin Exchange (HKbitEX) to protect the latter’s ON1ON custody platform. As the first Asian provider of digital asset insurance, OneDegree insures $100 million in digital assets held by HKbitEX.
https://twitter.com/doingchinabiz/status/1458771577340837899?s=20
As the market for digital assets develops, insurers and risk managers will boost investor confidence and help the market grow, according to OneDegree.
Wallets are covered by third-party insurance when they are damaged by natural disasters, cyber security risks such as outside hacking or malware attacks, or intentional or fraudulent acts by employees.
Ken Lo, the co-founder of HKbitEX, said that he wanted institutional investment in cryptocurrencies to expand following the announcement. He added:
“With over 1,800 licensed asset managers, Hong Kong is home to over US$3 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.”
To help crypto market participants avoid risks, the company is creating more technological solutions. Aside from its in-house cybersecurity platform Cymetrics, the firm’s tools will help clients assess their cyber risk and manage it, according to the firm.
Hong Kong’s Securities and Futures Commission is evaluating the rules governing virtual currency transactions, including whether individuals can invest in crypto-related exchange-traded funds.
A prominent and important financial hub, Hong Kong is among the most important financial markets in the world. The city has contributed significantly to cryptocurrency innovation. Some of the most well-known and successful crypto firms have been born in the city-state, including the cryptocurrency derivatives exchange FTX and the digital asset platform Crypto.com.
