The Beauty of an Exchange---Server Side

[BoXXoB]

Why don't the exchanges do what the banks do, which is take out insurance against hacking? I think Coinbase has insurance, but they appear to be the only ones.

I wonder what the requirements for an exchange to get insurance against hacking would be? I'm assuming they would require some sort of code audit in order to qualify? Seems like it would be pretty risky for insurance companies to ensure against hacking for these large exchanges.

Especially when we're talking bitcoin here. An insurance will not be given easily that's for sure.

Then again given there's a lot of speculation of hacks often being an inside job think that would make it even harder...

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[morantis]

the problem is that people want the best of both worlds.  they want a currency that the government won't touch or monitor and they want all the safeties that the government(or any other agency) provide.  they want to jump in there and swim in the water that has the sharks and the dangers, but they want to take a life preserver with them.  true, decentralized currency is packed with dangers and possible theft.