Korean Company To Offer Crypto Exchanges Insurance Against Hacking
Hanwha Insurance, a South Korean company, will offer crypto exchanges insurance services against the funds’ theft by intruders, The News Asia reports referring to Asia Times.
The insurance rate will be calculated based on the degree of risks determined by the insurance company along with the representatives of crypto exchanges. Currently, such services cover only the payment of amounts for the theft of personal data, keys, and passwords.
Late in August, the Korean Blockchain Association (KBA) signed an agreement with Hanwha on the launch of a new type of insurance for exchanges. Besides, they discussed the development of a new product.
Currently, there are no regulations in South Korea requiring crypto platforms to be insured against hacking. Only some of them acquire insurances for the theft of personal data. All market participants understand that such a service will be expensive, and not everyone will do that if the amount of compensation is insufficient.
Hanwha Insurance will begin consulting with some exchanges in October. In this matter, great joint efforts and coordination of actions of all interested persons are needed. Insurance is not obligatory, but it must exist on the market, one of the company's representatives stated.
Hackers have repeatedly attacked crypto exchanges in South Korea. In June, the trading platform Coinrail was hacked. The scammers stole $40 million in cryptocurrency. The exchange ceased operations for a month.
The Bithumb platform was hacked in the same month, and fraudsters stole about $30 million. The exchange resumed registration of new users only at the end of August.
As previously reported, most South Korean crypto exchanges were inspected by regulators.