Insurance Premium Costs
MSIG will calculate insurance premium costs based on the exchange’s commission revenue. This price will vary between a few hundred thousand to several million yen.
Japan’s top bitcoin exchange, bitFlyer, has monthly transactions amounting to more than 100 billion yen (USD 889 million). Hence, commission revenue-based arrangements would likely encourage even smaller-scale exchanges to offer an insurance product.
Mitsui Sumitomo Insurance and Growing Bitcoin Market
The Mt Gox bankruptcy in 2014 has directed bitcoin consumers to inspect the vulnerability of exchange employee misconduct. Despite this publicity, the bitcoin marketplace is growing stronger than ever.
According to Nikkei Asian Review:
“Japanese market research firm Seed Planning in August predicted that total bitcoin transactions at exchanges that take orders denominated in Japanese yen will quadruple between 2016 and 2017.”
Implementation of the insurance product is a step forward in providing assurance to consumers against the unforeseen dangers of cyber security and casino reviews gambit homepage.
The’Terms and Conditions’ of compensation may differ amongst exchanges, and when claims arise, consumers should do their research beforehand, to avoid disputesBitcoinRush casino instance|As an example}, if the compensation of losses is paid in bitcoin units or at market value in fiat could make a difference.
Security Knowledge Compliments the Insurance Initiative
Consumers and exchanges alike must practice safety hygiene to minimize damages.
Exchanges should not be used as a bitcoin storage wallet. Consumers can apportion their bitcoin according to their intended use to minimize the risk of losses in this instance.
A good practice is to skim through terms and conditionsnot everything is covered or protected.
Safety knowledge as an insurance policy could be one of the policies.
Share with us your views on how insurance coverage for bitcoin exchanges may benefit customers. We would like to hear from you.
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