Hanwha Insurance, a major South Korean insurance company is planning to introduce a new cyber insurance product for crypto exchanges in September. This new insurance product aims to provide compensation for hacking damages caused to exchanges.
The Insurance revealed that it is planning to start negotiations with individual crypto exchanges for insurance starting October. However, Hanwha added that even if an exchange intends to join, much coordination will be needed. This is because the reinsurance and insurance companies need to meet in order to get insurance.
The Asia Times in its report mentioned that exchanges may be reluctant to opt for taking insurance if sufficient compensation is not offered or if the premium amount is quite high. Ever since the Bithumb and Coinrail hack in June this year, the demand for insurance coverage for hacking damages has been rising in South Korea.
While the Bithumb crypto exchange already has two insurance policies, one with Heungkuk Fire & Marine Insurance Co., and the other with Hyundai Marine & Fire Insurance Co., they do not cover damages caused due to hacking.
In the month of June, the Korean Blockchain Association held discussions with Hanwha General Insurance Co. and Hyundai Marine & Fire Insurance Co. on how to provide insurance coverage for crypto exchanges irrespective of their size.
The Korean Blockchain Association has 23 members that are crypto exchanges. Amongst them are the country’s largest four exchanges: Bithumb, Upbit, Korbit, and Coinone. These four exchanges have insurance, but the coverage amounts are low, as stated in the Bitcoin News report.
As stated in the Asia Times, the Korean Association for Blockchain had previously signed an agreement with Hanwha Insurance to develop cyber insurance for crypto exchanges by the end of August and also discussed product development. Presently, some exchanges like Upbeat are taking part in cyber insurance. But most of these exchanges are charged for leakage of personal information. Hence it is difficult to compensate for such loss of funds that are stolen by hacking.
The post Hanwha Insurance Aiming To Provide Compensation For Hacking Damages Of Domestic Crypto Exchanges appeared first on OWLT Market.
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