Hong Kong's OneDegree Claims To Be First Asia-Firm Offering Crypto Insurance

Urian B., Tech Times 11 November 2021, 01:11 pm

A company from Hong Kong is claiming to be the first Asia-based firm offering crypto insurance. A massive Asia insurer by the name of OneDegree has now ventured into BTC in an attempt to be able to provide a model for other businesses within the field.

OneDegree Offers Crypto Insurance

The multi-line insurance firm called OneDegree has just announced that it is now partnering with the Hong Kong Bitcoin Exchange or HKbitEX to provide protection for the company's custody platform. OneDegree now claims to be the very first Asia-based insurance provider when it comes to digital assets.

The company has already been able to insure $100 million in digital assets directly under HKbitEX's own custody. Insurance demand for digital assets is currently growing. Insurance and risk management for digital assets will also help boost total investor confidence to help the market develop, as per OneDegree.

HKbitEX Gives Statement Regarding Digital Assets

According to the story by CoinTelegraph, third-party insurance aims to cover physical damage to wallets that are caused by natural occurrences, cybersecurity risks, and employee intentional or fraudulent acts. After the announcement, Ken Lo, the co-founder of HKbitEX, noted that he wants additional institutional investment when it comes to cryptocurrencies.

With well over 1,800 licensed asset managers, Hong Kong is currently home to more than $3 trillion in assets that are under management. Lo noted that they want to help asset managers enter this particular market in certain ways that would enable them to fulfill their own fiduciary duties towards their end investors.

Hong Kong Securities and Futures Commission

The company reportedly noted that it is now creating more technological solutions to assist crypto market participants in avoiding risk. In addition to its very own in-house cybersecurity platform known as Cymetrics, the tools will reportedly assist clients in assessing their own cyber risk to manage their assets, as per the firm.

It was reported that Hong Kong's very own Securities and Futures Commission is now reviewing rules when it comes to covering virtual currency transactions. This includes whether individuals will be able to invest in certain crypto-related exchange-traded funds.

Hong Kong 'One of the World's Important and Prominent Financial Hubs'

Hong Kong is reportedly one of the world's most important as well as prominent financial hubs. It has also had quite a significant impact when it comes to cryptocurrency innovation.

An example of this is that the city-state has given birth to a number of the most well-known and successful crypto films to date. This reportedly includes the cryptocurrency derivatives exchange known as FTX as well as the popular digital asset platform Crypto.com.

It is important to DYOR (do-your-own-research) before investing in any cryptocurrency asset. The insurance only covers breaches or natural causes that damage the owner's account but do not cover the losses due to a digital asset depreciation.

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Written by Urian B.