The Crypto.com (CRO) exchange has just increased its insurance policy to cover up to $750 million worth of cryptocurrencies. The goal is to offer additional protection to the platform’s users and attract institutional investors.
Crypto.com expands its insurance policy
On its Twitter account, exchange Crypto.com (CRO) announced that it has increased its insurance policy to cover up to $750 million in digital assets.
This move now provides additional security for the platform’s ten million users.
The insurance extension became effective on September 6, 2021 and was conducted by Arch Underwriting at Lloyd’s Syndicate 2012. This will apply for cold-storage assets held by the exchange on Ledger Vault.
The new insurance policy is intended to provide direct and indirect coverage for the platform’s custodians. It includes protection against physical damage, destruction and theft by third parties.
Kris Marszalek, co-founder and CEO of Crypto.com, said:
“We believe that security and data privacy are the foundation for the widespread adoption of cryptocurrencies. The renewal of the Lloyd’s insurance policy will greatly expand security protection for our growing user base.”
This coverage is one of the most important in the cryptocurrency industry. Moreover, this extension is not insignificant since it makes it easier to attract institutional or even the general public.
“By choosing to partner with Ledger Vault, a service provider known to insurers, Crypto.com was able to not only give subscribers the confidence in their safekeeping, but also to obtain an insurance policy in a much shorter time frame than usual,”said James Croome, head at Lloyd’s
Thus, consumer protection is becoming an important topic within the ecosystem especially when it comes to the storage and security of cryptocurrencies.
As a result, insurance policies that help cover digital assets are expected to grow in the coming months. As regulators tighten the screw more and more, exchanges will face a tightening of their security standards.
The main objective for platforms is obviously to avoid the potential impact of a hacker attack, as KuCoin suffered in September 2020 losing more than $280 million.