According to a recent post, Gemini announced that they have secured an insurance coverage for the cryptocurrencies they store on their customers’ behalf in their online hot wallets. The digital currency exchange which facilitates buying, selling and storage of digital assets stated that the insurance would ensure extra security. The insurance coverage is available to the users of the exchange platform through a combination of third-party insurance underwriters.
After meeting a series of top insurers in the industry, Gemini secured an insurance coverage for their digital asset platform in order to ensure greater security for their online hot wallets. The insurance would cover all the digital assets held by Gemini users in the exchange’s wallet.
They further stated that the new insurance coverage helped the platform take a step forward towards achieving their goal of “building the future of money”. Furthermore, the current Federal Deposit Insurance Corporation [FDIC]’s deposit insurance coverage which was used for fiat currencies will now be complemented by the new insurance coverage.
It was reported that insurance companies were always hesitant in covering cryptocurrency platforms due to the high risks associated with them. There have been several instances of hacking cryptocurrency platforms, resulting in a huge loss for both individuals and organization. The inefficient security standards, lack of internal controls and the regulatory problems with respect to the policies and procedures has resulted in insurers being skeptical about the cryptocurrency market.
This has led to several cryptocurrency exchanges and custodians to either not get insured or not acquire it due to high costing of premiums charged by the limited number of insurers.
Gemini’s Head of Risk, Yusuf Hussain further added that they were able to successfully gain the trust of its insurers. He added:
“Gemini, a New York trust company, is indeed a safe and secure exchange and custodian where customers can buy, sell, and store digital assets in a regulated, secure, and compliant manner”
The Gemini exchange platform recently announced that they received regulatory approval to list Bitcoin Cash [BCH]. The exchange platform had also stated that they will list Litecoin [LTC] on 13th October.