Bitcoin Exchanges at Japan Get be Insured

[CraigWrightBTC]

Japanese Bitcoin exchanges and their customers will soon be covered for the first time through a Tokyo product launched on the basis of insurance company Mitsui Sumitomo Insurance.

As reported by the regional Nikkei publication, coverage will be offered against damage and loss of violation or hacks, ranging from ¥ 10 billion to 1 yen (between $ 88,000 and $ 8.8 million) carried. Especially the coverage also includes corporate casualty losses and employee internal errors, a BitPay clause certainly prefer following a theft of 5,000 Bitcoins in 2015 as a result of a phishing attack. The company Bitcoin payments was arguing with its insurance company which refused to lose anything to cover less than 1 million as a result of the theft.

In addition, the insurer will pay for the cost as a result of an incident such as communicating with clients in the scenario of a break or facing damages that are applied to other countries.

[error08]

Japanese Bitcoin exchanges and their customers will soon be covered for the first time through a Tokyo product launched on the basis of insurance company Mitsui Sumitomo Insurance.

As reported by the regional Nikkei publication, coverage will be offered against damage and loss of violation or hacks, ranging from ¥ 10 billion to 1 yen (between $ 88,000 and $ 8.8 million) carried. Especially the coverage also includes corporate casualty losses and employee internal errors, a BitPay clause certainly prefer following a theft of 5,000 Bitcoins in 2015 as a result of a phishing attack. The company Bitcoin payments was arguing with its insurance company which refused to lose anything to cover less than 1 million as a result of the theft.

In addition, the insurer will pay for the cost as a result of an incident such as communicating with clients in the scenario of a break or facing damages that are applied to other countries.

This is good news for development and security of bitcoin and will affect positively for user to have such insurance, but I didn't get it about the range of losses from 10 billion to 1 yen, and BitPay following hackers attacked in 2015 and then bitcoin payment arguing to refused to cover less than 1 Million. I mean if the insurance company stated to covered losses between those range (10 B to 1 yen) why less than 1 Million not include, I'm sorry not following correctly but could you mention link of the news, so we can fully understand this.

[CraigWrightBTC]

Japanese Bitcoin exchanges and their customers will soon be covered for the first time through a Tokyo product launched on the basis of insurance company Mitsui Sumitomo Insurance.

As reported by the regional Nikkei publication, coverage will be offered against damage and loss of violation or hacks, ranging from ¥ 10 billion to 1 yen (between $ 88,000 and $ 8.8 million) carried. Especially the coverage also includes corporate casualty losses and employee internal errors, a BitPay clause certainly prefer following a theft of 5,000 Bitcoins in 2015 as a result of a phishing attack. The company Bitcoin payments was arguing with its insurance company which refused to lose anything to cover less than 1 million as a result of the theft.

In addition, the insurer will pay for the cost as a result of an incident such as communicating with clients in the scenario of a break or facing damages that are applied to other countries.

This is good news for development and security of bitcoin and will affect positively for user to have such insurance, but I didn't get it about the range of losses from 10 billion to 1 yen, and BitPay following hackers attacked in 2015 and then bitcoin payment arguing to refused to cover less than 1 Million. I mean if the insurance company stated to covered losses between those range (10 B to 1 yen) why less than 1 Million not include, I'm sorry not following correctly but could you mention link of the news, so we can fully understand this.

I am sorry, it is still unofficial statement so i don't have enough source of details, that is wh i made it, hopelly there are other users who can make it more complete and there are people from Japan that can do it.

[Velkro]

This is good news for development and security of bitcoin

Its huge news, as long as they will pay out this insurance, because insurance companies doing everything to not paying up when they should be.
Thats their business model :/.

[Kakmakr]

Where was this when MtGox happened. I think this might have been in response to MtGox and other exchange hacks, that they have started this. When insurance companies gets involved, it just complicates matters, because we get long drawn out investigations and this can go on for years. Most insurance companies do not have the forensic skills to investigate these hacks properly, so they would need to outsource.

You are going to pay premium for this kind of coverage, and the additional costs are going to be dumped on the customers in the form of higher fees. 

[dearbesz1219]

This is good news for development and security of bitcoin

Its huge news, as long as they will pay out this insurance, because insurance companies doing everything to not paying up when they should be.
Thats their business model :/.

That's true, insurance companies they use one system for them to earn quickly as they can. And the saddest part of once they collect big amount of money they will all of a sudden declare in the community that the company is being closed or bankcrupt, but the truth is not. So the investors will do nothing about it,only 20-25% will be return to their investment.

[Milkduds]

Insurance and regulation go hand in hand,so on one hand it is good for people wanting to put a lot in one exchange and on the other what are they giving up to achieve this protection? Japan is moving a lot faster on bitcoin then I was expecting,presumed it was mostly a gesture for them.

[Patatas]

Any source for the news ? Link ? I actually want to read the original article.

This may not work out.While Insurance companies are providing security over your bitcoin wallet,they must have the control over it ? You will need to.They would be tracking your transactions ? They should be.I can come up with random excuse that yesterday night my bitcoins just disappeared out of my wallet,someone hacked and stole it.What's next ? I get the part of my coins back according to policy ? I mean we can fake situations here.Too intuitive at the moment.

[Yakamoto]

I'm impressed that there are companies willing to insure exchanges, but I guess if they think there is enough money to come out of having a volatile exchange pay for their services, they will jump on the chance to make more.

I'd expect incredibly high premiums for the insurance policies; there can be a ton of money lost in an instant and the insurance companies won't want to pay for everything lost.

[bryant.coleman]

I am never again going to use a Japanese bitcoin exchange. They can do whatever they want, including insuring the deposits. But I learnt my lesson after losing BTC0.01 in the Mt Gox robbery (fortunately, at that point of time I was storing most of my coins in my BTC-e wallet). The Japanese legal system is rotten. Almost three years have passed since the Mt Gox robbery. No one has been arrested till now, and not a single mBTC has been refunded to the victims.

[MingLee]

Japanese Bitcoin exchanges and their customers will soon be covered for the first time through a Tokyo product launched on the basis of insurance company Mitsui Sumitomo Insurance.

As reported by the regional Nikkei publication, coverage will be offered against damage and loss of violation or hacks, ranging from ¥ 10 billion to 1 yen (between $ 88,000 and $ 8.8 million) carried. Especially the coverage also includes corporate casualty losses and employee internal errors, a BitPay clause certainly prefer following a theft of 5,000 Bitcoins in 2015 as a result of a phishing attack. The company Bitcoin payments was arguing with its insurance company which refused to lose anything to cover less than 1 million as a result of the theft.

In addition, the insurer will pay for the cost as a result of an incident such as communicating with clients in the scenario of a break or facing damages that are applied to other countries.

This is an interesting proposition, and I wonder how much they're going to charge for their insurance policies, especially considering the value of money moving back and forth. I would expect insurance coverage to be low, heavily investigated, and more than likely they will overcharge for whatever it is they supply.

This'll be interesting to see whether or not it works, but if it does, it might usher in a new era of consumer protection within the Bitcoin economy.

[Victorycoin]

Where was this when MtGox happened. I think this might have been in response to MtGox and other exchange hacks, that they have started this. When insurance companies gets involved, it just complicates matters, because we get long drawn out investigations and this can go on for years. Most insurance companies do not have the forensic skills to investigate these hacks properly, so they would need to outsource.

You are going to pay premium for this kind of coverage, and the additional costs are going to be dumped on the customers in the form of higher fees. 

I think this development is an immediate response to the tragedy that MtGox turned out and stands a good chance of giving people some confidence again about exchange companies in Japan. An insurance company no doubt have to go through some investigations as a necessary process to ascertain the cause of loss and the appropriate indemnification.

[Kprawn]

I am never again going to use a Japanese bitcoin exchange. They can do whatever they want, including insuring the deposits. But I learnt my lesson after losing BTC0.01 in the Mt Gox robbery (fortunately, at that point of time I was storing most of my coins in my BTC-e wallet). The Japanese legal system is rotten. Almost three years have passed since the Mt Gox robbery. No one has been arrested till now, and not a single mBTC has been refunded to the victims.

Yea, I agree.... I too turned against the use of exchanges after I lost coins in two exchanges. We cannot trust third parties with our money.

You never have the same view about a service, after you lost money. No amount of insurance will change my mind, and I only shift coins

through these exchanges when I have to deal with exchanges. I keep 80% of my coins in cold storage, to make sure nobody can get to it.  

[fiscorcle]

Are any of the current exchanges insured?
I am really wanting to know if they are infact insured in Japan as in Kraken deals directly with JPY as well so they should be.

[avatar_kiyoshi]

Any source for the news ? Link ? I actually want to read the original article.

This may not work out.While Insurance companies are providing security over your bitcoin wallet,they must have the control over it ? You will need to.They would be tracking your transactions ? They should be.I can come up with random excuse that yesterday night my bitcoins just disappeared out of my wallet,someone hacked and stole it.What's next ? I get the part of my coins back according to policy ? I mean we can fake situations here.Too intuitive at the moment.

Found this: https://www.cryptocoinsnews.com/bitcoin-exchanges-can-now-get-insured-japan/

Yes, insurance companies will ask your personal data and anything, must be tracking.
Since you using exchange services, usually they ask your personal data too, also tracking your transaction too, so what the different use or not insurance, is may be more secure(?), but vulnerable to manipulate. Yes we need considering mt.gox case.

[NorrisK]

Insurance companies try to earn a penny whereever they can. It was only a matter of time till they figured out how to do it in the cryptocurrency world..

The challenge will be to proof the actual loss of your coins to them to get a reimbursement as an exchange. I guess they will have some check in place to make sure the coins are really out of control of the exchange.

[Betwrong]

I am never again going to use a Japanese bitcoin exchange. They can do whatever they want, including insuring the deposits. But I learnt my lesson after losing BTC0.01 in the Mt Gox robbery (fortunately, at that point of time I was storing most of my coins in my BTC-e wallet). The Japanese legal system is rotten. Almost three years have passed since the Mt Gox robbery. No one has been arrested till now, and not a single mBTC has been refunded to the victims.

Wasn't Mark Karpelès arrested? I think he was and as long as the investigation is still going on he is confined to his flat or something like that.

As for insurance companies they only can make things more complicated but they will find a thousand excuses to not refund you your lost money if something bad happens. I'd rather not count on them. If you don't want to lose your money don't keep them on an exchange, withdraw if the amount looks big enough for you to lose it easily.

[Doamader]

This insurance for sure it has a big cost, besides that how to trust they will repay the loss, lets look bitfinex hack, would they be able to repay the costumers with that? I mean they must have to charge a huge ammount of bitcoins to cover such exchanges funds from the members. Nothing is free and this lookse a good step even when we dont know nothing official yet, but im sure the cost to get this insurance are quite high, and only some exchanges will be able to pay for it.

[JasonXG]

This is great news and a food way for another company to make money and be is business providing insureance to users of exchanges. This is better because the insurance company will habe the contact details of the exchange and so they won't be able to run very easily. My only concern is what if exchanges refuse to use this service and will the insurance company really pay out of something happens ? Just because they say they will doesnt mean they will.

[NeuroticFish]

Japanese Bitcoin exchanges and their customers will soon be covered for the first time through a Tokyo product launched on the basis of insurance company Mitsui Sumitomo Insurance.

It's a news I am waiting for since a couple of years. It's a good start.
I am curious how it is implemented, meaning if they have some odd hidden terms or not. But we'll see this at the first hack..
And I am curious when will this get to become a worldwide procedure.