- Hong Kong’s Securities & Futures Commission has set a minimum insurance requirement of 50% for licensed crypto exchanges.
- OSL Exchange has signed a two-year partnership with Canopius to provide insurance coverage of 95% of its users’ assets.
- HashKey Exchange has signed a crypto insurance agreement with OneInfinity, providing protection for up to $50 million to $400 million worth of users’ assets.
Hong Kong’s Securities & Futures Commission is taking steps to ensure that licensed crypto exchanges provide insurance coverage to protect users’ assets. OSL Exchange has set a high standard by partnering with Canopius to offer 95% coverage for its users’ assets. This move aims to increase trust and confidence in the cryptocurrency industry by providing added security for customers.
HashKey Exchange has also taken steps to protect its users’ assets by signing a crypto insurance agreement with OneInfinity. This coverage provides protection against incidents such as server downtime, data back-up, and load management. By providing insurance coverage, these exchanges are demonstrating their commitment to safeguarding their customers’ assets and mitigating potential risks in the crypto space.
The introduction of insurance requirements for licensed crypto exchanges is a positive development for the industry. By mandating insurance coverage, regulators are sending a strong message that protecting customers’ assets is a priority. This move could help attract more institutional investors and traditional financial players who may have been hesitant to enter the crypto market due to concerns about security and risk. As the crypto industry continues to evolve and mature, increased insurance coverage will be vital in building trust and fostering mainstream adoption.