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In a First for Asia, Hong Kong Firm to Offer Crypto Insurance

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Thu, 11/11/2021 - 06:23
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Alex Dovbnya
The first Asian insurer has ventured into cryptocurrencies, hoping to set an example for other industry participants
In a First for Asia, Hong Kong Firm to Offer Crypto Insurance
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OneDegree Hong Kong, a licensed multi-line insurer, has inked a deal with local digital asset exchange HKbitEX to provide coverage for up to $100 million worth of crypto, The South China Morning Post reports.

It will cover losses that may happen due to malware attacks, employee theft as well as physical damage.

OneDegree expects more insurers to follow its example, which will make it easier to mitigate risks linked to the volatile asset class.

The company is willing to discuss its risk management practices with other players within the industry.

HKbitEX co-founder Ken Lo says that he wants more institutional capital to flow into cryptocurrencies:

With over 1,800 licensed asset managers, Hong Kong is home to over US$3 trillion in assets under management. We want to help asset managers enter this market in ways that enable them to also fulfill their fiduciary duties to their end investors. 

Related
FTX Crypto Exchange Relocates from Hong Kong Over Tight Regulatory Measures

Catching up with the U.S.

The absence of insurance coverage has been a big deterrent for cryptocurrency-curious asset managers in Asia.

Despite coming out of age, the crypto industry is still rife with hacks and exit scams.

The cryptocurrency insurance market has been growing at a fast clip in the U.S., benefiting from regulatory clarity, broader adoption of digital assets and high crypto prices. 

In April, Palo Alto-based BitGo expanded insurance capacity for its institutional clients by a whopping $600 million amid skyrocketing demand.

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.