According to Asia Times, one of the largest insurance companies in South Korea, Hanwha Insurance is ready to bring a new product to the market insurance of cryptocurrency exchanges from hacking and theft of funds.
A couple of weeks ago, the Korean Block Association (KBA) entered into a Hanwha Insurance agreement to launch a new type of insurance. The rate for the new type of policy will be calculated individually with representatives of crypto-banks interested in insurance, and will depend directly on the security level of the exchange and past incidents.
At the moment, in South Korea, the law doesn’t oblige the crypto exchange to insure against hacking. Only some of the Korean exchanges have already concluded insurance contracts, but until today they have covered losses only from the theft of personal data of users, their keys or passwords. And if the amount of compensation for the new type of insurance will be insufficient, we doubt that most exchanges will conclude contracts. Moreover, insurance against hacking will be expensive, since the insurance company is aware of the vulnerability of platforms that hack with enviable regularity.
Starting from October, Hanwha Insurance will hold consultations with representatives of the largest Korean platforms, where they will discuss technical aspects of cooperation. According to company representatives, insurance is not an obligatory product for stock exchanges, but it simply has to be affordable in the modern market.
Recall that three months ago, two large crypto-currency exchanges of South Korea, Bithumb and Coinrail, were subjected to hacker attacks. As a result, the attackers abducted funds worth more than $ 70 million, and the platforms were able to return to work only a month later.