Insurance Premium Prices

MSIG will compute insurance premium costs based on the exchange’s commission revenue. This price will range between a few hundred thousand to several million yen.

Japan’s top bitcoin exchange, bitFlyer, has monthly trades amounting to over 100 billion yen (USD 889 million). Hence, even smaller-scale exchanges would likely encourage to provide an insurance product.

Mitsui Sumitomo Insurance and Growing Bitcoin Market

The Mt Gox bankruptcy in 2014 has directed bitcoin consumers to inspect the vulnerability of exchange employee misconduct. Despite this bad publicity, the worldwide bitcoin marketplace is growing stronger than ever.

According to Nikkei Asian Review:

“Japanese market research company Seed Planning in August predicted that total bitcoin transactions at exchanges that accept orders denominated in Japanese yen will quadruple between 2016 and 2017.”

Implementation of the insurance product is a step forward in providing assurance to consumers against the unforeseen dangers of cyber security and 5 dimes casino bitcoin bitcoin casino promo codes

The’Terms and Conditions’ of compensation may differ amongst exchanges, and when claims arise consumers should do their research to prevent disputes.

As an example, if the compensation of losses is paid in bitcoin units or at market value in fiat could make a difference.

Security Knowledge Compliments the Insurance Initiative

Consumers and exchanges alike should practice safety hygiene to minimize damages.

Exchanges should not be used as a bitcoin storage wallet. Their bitcoin can be apportioned by consumers according to their intended use to minimize the risk of losses.

One good practice is to skim through conditions and terms not everything is covered or shielded.

Security knowledge as an insurance policy may be one of the best policies.

Share with us your views on how insurance policy for bitcoin exchanges may benefit consumers. We would like to hear from you.

Picture Credit: CC BY-SA 3.0 NY, Shutterstock

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