Hong Kong company provides insurance for Asian cryptocurrency assets

A large Asian insurance company has set foot in Bitcoin (Bitcoin), trying to provide a model for other companies in the field.

Multi-line insurance company OneDegree Announce On Thursday, it is working with the Hong Kong Bitcoin Exchange (HKbitEX) to provide protection for the latter’s ON1ON custody platform. OneDegree claims to be the first digital asset insurance provider in Asia and has insured USD 100 million of digital assets under HKbitEX custody.

OneDegree stated that the demand for insurance for digital assets is growing, and insurance and risk management of digital assets will boost investor confidence and help the market develop.

Third-party insurance covers physical damage to the wallet caused by natural events, network security risks (such as external hacker attacks or malware attacks), and deliberate or fraudulent actions by employees.

After the announcement, Ken Lo, the co-founder of HKbitEX, stated that he hopes to make additional institutional investments in cryptocurrencies. He continued:

“Hong Kong has more than 1,800 licensed asset management companies with more than US$3 trillion in assets under management. We hope to help asset management companies enter this market so that they can also fulfill their fiduciary responsibilities to ultimate investors.”

The company said it is creating more technical solutions to help crypto market participants avoid risks. According to the company, in addition to its internal cyber security platform Cymetrics, these tools will also help customers assess and manage their cyber risks.

According to reports, the Hong Kong Securities Regulatory Commission is currently reviewing Rules covering virtual currency transactions, Including whether individuals can invest in crypto-related exchange-traded funds.

Hong Kong is one of the most important and famous financial centers in the world. It has had a major impact on cryptocurrency innovation.For example, this city-state gave birth to some of the most famous and successful crypto companies to date, including cryptocurrency derivatives exchanges FTX And digital asset platform Crypto.com.