Topic: Insurance is Important for Crypto Exchanges (Read 211 times)
The point here is to know if there will be any insurance company willing to insure an exchange. Imagine having to respond to a theft of 40 million dollars in cryptos. The exchanges are high risk potential customers, if some insurer assures them, that will not come cheap.
Insurance in general and crypto do not mix together. In order to have working insurance, crypto has to be more heavily regulated, which defeats many of the points of having crypto in the first place. It is crappy but if we want a truly decentralized currency, things can't be insured.
insure and do not be afraid, the coin must be insured for a certain amount and a certain limit, since it is already an asset
I think that everything in the world can be bought or insured, there would be guarantees from the insured
As the crypto keeps expanding day in day out, no one can tell what future hold for crypto currency and for one to be on a safer side, if one can get insurance at least it can be of help.
It will not work good,,, there will be lot of problems.
Insurance will not come for free means exchange charging high trading fees. Most of the hacks of exchange are due to their negligence or insider job. Insurance is not going to pay for the negligence or insider job.
Exchange need to do audit frequently their balance and should use cold wallets. Instead of paying hefty fees to insurance every month (with no guarantee that it will pay) they should invest their time and money in security measures. It will be good if they got Security audit every six month by an external agency.
Exchange need to do audit frequently their balance and should use cold wallets. Instead of paying hefty fees to insurance every month (with no guarantee that it will pay) they should invest their time and money in security measures. It will be good if they got Security audit every six month by an external agency.
I have gone through the article and it has explained it quite well about why it is important to have insurance in crypto exchange. I am convinced by the article and will do a insurance for my crypto exchange. It is really necessary.
Wow, even though the article is simple and plain, it sounds like a great idea! We humans are used to insurances of all kinds, especially when it comes to important matters like health or significant items. I wonder, though, if people use insurances to cover the cases of bank robberies (if they kept their money there) or bankrupcy... Anyway, insurances for exchanges sounds like a great deal, if an exchange wants to show how it cares about their customers. But would any company really agree to create an insurance for an exchange with hundreds of millions of dollars circulating out there and knowing that in bad case they will have to reimburse dozens of millions? How big should an insurance company be to be willing to cover those risks? And the companies saying they'll handle it might be turn out to be a scam, which is collecting insurance payments, but once the hack happens, not doing a thing about it.
Insurance is a good thing to secure our funds. But with exchanges’ high risk business model and super expensive premium in cyber insurance. I don’t think it is workable.
You guys should read this article: https://medium.com/@policypalnet/why-insurance-is-important-for-crypto-exchanges-4fa54a39941
Definitely needed for the unbank and I'm looking forward for PolicyPal to release crypto protect product. And definitely I need an insurance for my wallet. I've been holding there tokens because this project is solid and with actual clients and good partnership. Yes, insurance makes people calm about their moves with money and they are able to invest more and more money, I think it is really good idea.
Not sure if that will be supported by many, the idea is good for investors and traders, just in case things not good happen from the exchange that they are using, but the question is still how this will be applied as most traders still wants being anonymous though big exchange already implemented kyc to protect the business and the costumers. 
I don't even have my insurance so why would I take an insurance from a crypto exchange?
An exchange that will implement this is really a greedy one, they are already earning from fees and transfers.
An exchange that will implement this is really a greedy one, they are already earning from fees and transfers.
Insurance is a big plus for all money holders, I know banks that insure accounts and credit cards owners from hacking and stealing money. Especially now this issue is relevant for exchanges. and for cryptocurrency wallets, and for all owners and holders of cryptocurrency. But there is a question of verification of owners and anonymity of the blockchain as a whole. It turns out that to protect their funds in any case have to lose their anonymity.
Of course, it will be really easier to work if we shall have such insurance, it will be more reliable and investing will be raising much faster thanks to this one, and investors will be more pleased with doing their usual moves. It is so needed to have insurance now there.
Yes, insurance makes people calm about their moves with money and they are able to invest more and more money, I think it is really good idea.
This can be a good idea and can really help the many customers of an exchange get back the coins/tokens they might lost if an exchange is hacked or even if the business will fail. However, am not sure if there will be a big insurance company that can be interested to deal with crypto exchanges as they know that the industry is not yet that very stable given that it remains to be young and is always subject to manipulation by inside and outside forces. There lies the biggest problem. Otherwise, an exchange applying for an insurance has to be transparent in everything it is doing...now I really doubt if any exchange will do that as it can mean losing some control on the business they built up. Still, as a customer of many exchange am hoping that something can be done along this line which is assuring us that we can get something when something will terribly go wrong.
insurance companies don't make money by paying their customer when something goes wrong. instead they make money when they don't pay them and because of that they are doing all they can not to pay. in other words eve if an exchange were insured one day, that still wouldn't make it safe and i wouldn't say they "need it" because that wouldn't change a thing in my opinion, they are still going to get hacked and we won't get our money back or they would still scam us and we still wouldn't get our money back.
in the end the customer (we as traders) are going to lose as long as we are using centralized exchanges whether they are insured or not.
in the end the customer (we as traders) are going to lose as long as we are using centralized exchanges whether they are insured or not.
I agree with you about this fact and cryptocurrency is not approved by many countries because it's not legit .
In the situation of cryptocurrency now, it's very hard for insurance companies to accept crypto as insurance asset. Furthermore, we still don't have clear law for cryptocurrency, is it an asset, stock, or money? There is no exactly answer. What important is the Cyber Security of exchanges, we need exchanges have strong solutions for securing user's asset.
insurance companies don't make money by paying their customer when something goes wrong. instead they make money when they don't pay them and because of that they are doing all they can not to pay. in other words eve if an exchange were insured one day, that still wouldn't make it safe and i wouldn't say they "need it" because that wouldn't change a thing in my opinion, they are still going to get hacked and we won't get our money back or they would still scam us and we still wouldn't get our money back.
in the end the customer (we as traders) are going to lose as long as we are using centralized exchanges whether they are insured or not.
in the end the customer (we as traders) are going to lose as long as we are using centralized exchanges whether they are insured or not.
I think it's a really good idea to have an insurance along with protection in case of crypto exchanges. PolicyPal seems to be a really good system to provide insurance along with Crypto Protect security. Especially under current circumstances where such hacks are getting common from day to day, PolicyPal along with CryptoPrevent seems to be promising.
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