OneDegree Hong Kong, a licensed multi-line insurer, has inked a deal with local digital asset exchange HKbitEX to provide coverage for up to $100 million worth of crypto, The South China Morning Post reports.
The insurance covers losses that may happen due to malware attacks, employee theft, and physical damage. Therefore, One Degree expects more insurers to follow its example, which will make it easier to mitigate risks linked to the volatile asset class.
The company is welcoming other players of the industry to the table to discuss risk management practices.
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.Ken Lo, HKbitEX Co-Founder
Catching up with the U.S.
There is widespread worry amongst crypto-minded investors across Asia. Despite coming out of age, the crypto industry is still rife with hacks and exit scams.
In August, Japanese cryptocurrency exchange Liquid was hit by a cyberattack that resulted in losses worth US$97 million after some of its cryptocurrency wallets were compromised.
The US has been seeing steep growth in the cryptocurrency market industry, endorsed by regulatory clarity, broader adoption of digital assets, and high crypto prices.
In April, Palo Alto-based BitGo expanded insurance capacity for its institutional clients by a whopping $600 million amid skyrocketing demand. With banking institutions like Goldman Sachs as well as major crypto firms like Mike Novogratz’s Galaxy Digital backing it; the firm is on the rise amid a growing crypto market.
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