Bitcoin Forum

You guys should read this article: https://medium.com/@policypalnet/why-insurance-is-important-for-crypto-exchanges-4fa54a39941

CryptoPrevent will cover network security liability, data breach liability, hacker theft. It’ll be an amazing insurance for crypto exchanges.

I am not agree with this thought because this market is not stable. Anything can happen anytime and this markets price fluctuation range is also very high. If you want to make profit then you need to choose a good coin. In this situation you don't need any insurance.

The way crypto market is expanding, it's a situational demand now to cover data breaching, network security, restoration costs for data and programs and hacker theft by insurance. If this really happen, many investors will move to the crypto market, I believe.

Insurance is important, but I am not sure if any insurance company is really able to insure the small exchanges with un-audited procedures and non-vetoed personal.

Now the market crypto currency is very much popular and wide. With the presence of different coins, the market has become very complex. Moreover the market is also very risky and uncertain and so insurance is needed for the crypto exchanges.

I think something like binance created SAFU would be good for all exchanges, if they fail to deliver security and get hacked then they pay with their earned money thanks to us.

Yes i also feel that there should be some protection for investors who are holding their assets on exchange wallets, even if full fledge insurance is not available there should be a mechanism where the investors coins should be returned fully in case of hack or theft, the exchange can buy the stolen coins from market out of their profit and credit the investors.

Mainly Insurance secure our risk based on this market we need insurance for crypto system also this will be good for investors because they will invest more, so people will be more secured and tension free because they can avoid loss with this.

I think it's a really good idea to have an insurance along with protection in case of crypto exchanges. PolicyPal seems to be a really good system to provide insurance along with Crypto Protect security. Especially under current circumstances where such hacks are getting common from day to day, PolicyPal along with CryptoPrevent seems to be promising.

insurance companies don't make money by paying their customer when something goes wrong. instead they make money when they don't pay them and because of that they are doing all they can not to pay. in other words eve if an exchange were insured one day, that still wouldn't make it safe and i wouldn't say they "need it" because that wouldn't  change a thing in my opinion, they are still going to get hacked and we won't get our money back or they would still scam us and we still wouldn't get our money back.
in the end the customer (we as traders) are going to lose as long as we are using centralized exchanges whether they are insured or not.

In the situation of cryptocurrency now, it's very hard for insurance companies to accept crypto as insurance asset. Furthermore, we still don't have clear law for cryptocurrency, is it an asset, stock, or money? There is no exactly answer. What important is the Cyber Security of exchanges, we need exchanges have strong solutions for securing user's asset.

I agree with you about this fact and cryptocurrency is not approved by many countries because it's not legit .

This can be a good idea and can really help the many customers of an exchange get back the coins/tokens they might lost if an exchange is hacked or even if the business will fail. However, am not sure if there will be a big insurance company that can be interested to deal with crypto exchanges as they know that the industry is not yet that very stable given that it remains to be young and is always subject to manipulation by inside and outside forces. There lies the biggest problem. Otherwise, an exchange applying for an insurance has to be transparent in everything it is doing...now I really doubt if any exchange will do that as it can mean losing some control on the business they built up. Still, as a customer of many exchange am hoping that something can be done along this line which is assuring us that we can get something when something will terribly go wrong.

Yes, insurance makes people calm about their moves with money and they are able to invest more and more money, I think it is really good idea.

Of course, it will be really easier to work if we shall have such insurance, it will be more reliable and investing will be raising much faster thanks to this one, and investors will be more pleased with doing their usual moves. It is so needed to have insurance now there.

Insurance is a big plus for all money holders, I know banks that insure accounts and credit cards owners from hacking and stealing money. Especially now this issue is relevant for exchanges. and for cryptocurrency wallets, and for all owners and holders of cryptocurrency. But there is a question of verification of owners and anonymity of the blockchain as a whole. It turns out that to protect their funds in any case have to lose their anonymity.

I don't even have my insurance so why would I take an insurance from a crypto exchange?

An exchange that will implement this is really a greedy one, they are already earning from fees and transfers.

Not sure if that will be supported by many, the idea is good for investors and traders, just in case things not good happen from the exchange that they are using, but the question is still how this will be applied as most traders still wants being anonymous though big exchange already implemented kyc to protect the business and the costumers.

Definitely needed for the unbank and I'm looking forward for PolicyPal to release crypto protect product. And definitely I need an insurance for my wallet. I've been holding there tokens because this project is solid and with actual clients and good partnership.

Insurance is a good thing to secure our funds. But with exchanges’ high risk business model and super expensive premium in cyber insurance. I don’t think it is workable.

Wow, even though the article is simple and plain, it sounds like a great idea! We humans are used to insurances of all kinds, especially when it comes to important matters like health or significant items. I wonder, though, if people use insurances to cover the cases of bank robberies (if they kept their money there) or bankrupcy... Anyway, insurances for exchanges sounds like a great deal, if an exchange wants to show how it cares about their customers. But would any company really agree to create an insurance for an exchange with hundreds of millions of dollars circulating out there and knowing that in bad case they will have to reimburse dozens of millions? How big should an insurance company be to be willing to cover those risks? And the companies saying they'll handle it might be turn out to be a scam, which is collecting insurance payments, but once the hack happens, not doing a thing about it.

Insurance will not come for free means exchange  charging high trading fees. Most of the hacks of exchange are due to their negligence or insider job. Insurance is not  going to pay for the negligence or insider job.

Exchange need to do audit frequently their balance and should use cold wallets. Instead of paying hefty fees to insurance every month (with no guarantee that it will pay) they should invest their time and money in security measures. It will be good if they got Security audit every six month by an external agency.

It will not work good,,, there will be lot of problems.

As the crypto keeps expanding day in day out, no one can tell what future hold for crypto currency and for one to be on a safer side, if one can get insurance at least it can be of help.

I think that everything in the world can be bought or insured, there would be guarantees from the insured

insure and do not be afraid, the coin must be insured for a certain amount and a certain limit, since it is already an asset

Insurance in general and crypto do not mix together. In order to have working insurance, crypto has to be more heavily regulated, which defeats many of the points of having crypto in the first place. It is crappy but if we want a truly decentralized currency, things can't be insured.

The point here is to know if there will be any insurance company willing to insure an exchange. Imagine having to respond to a theft of 40 million dollars in cryptos. The exchanges are high risk potential customers, if some insurer assures them, that will not come cheap.