Digital asset exchange Bitwoot has beefed up its insurance measures to combat the inherent uncertainties associated with the crypto space.
“The policy covers an array of crime-related cases, such as employee theft, loss while the assets are stored at any premises, loss in transit, loss caused by computer fraud or funds transfer fraud, and loss related to legal fees and expenses,” an Oct. 15 statement from Bitwoot detailed with regard to the firm’s updated insurance measures.
Cryptocurrency offers added freedom when compared to traditional finance, allowing users to transfer the assets they own with greater ease and self-sovereign control. Such advantages can also make theft more viable, however. To combat this, a number of crypto exchanges now boast various forms of customer insurance, including Binance, with its Secure Asset Fund for Users, or SAFU for short.
Bitwoot’s new insurance policy is likewise tailored specifically for crypto. It is made possible through the involvement of a number of players, including U.K.-based Paragon International Insurance Brokers. “Our crime insurance policy is designed with the specifics of digital assets in mind,” Paragon’s senior vice president, Jeff Hanson, said in the statement, adding:
“Traditional insurance policies do not translate directly into digital assets, which is why we’ve created and placed a policy to fit the bespoke requirements of highly respected and forward-looking exchanges such as Bitwoot, which value the safe custody of their customers’ funds above all else.”
Bitwoot‘s added coverage stacks on top of insurance that BitGo, a digital asset trust and security company, provides to the platform. As part of their offering, 98% of Bitwoot’s crypto holdings are kept securely offline using the BitGo platform.