Bitstamp, the world’s longest-running crypto exchange, today announced it has substantially increased its insurance policy limits of indemnity in partnership with Paragon Brokers, a specialist insurance broker. This will significantly expand protection for the company’s rapidly growing user base of customers.
Crime insurance cover is offered by Paragon International Insurance Brokers in coordination with Woodruff Sawyer and underwritten by various insurance companies and certain syndicates at Lloyd’s of London. The policy applies to digital assets held at Bitstamp either offline or online and covers an array of crime-related cases. These include employee theft, loss while the assets are stored at any premises, loss in transit, loss caused by computer fraud or funds transfer fraud, as well as loss related to legal fees and expenses.
The Crime insurance policy supplements existing insurance of assets held in cold storage. Bitstamp keeps approximately 95% of all digital assets stored offline and protected to the extent of BitGo’s insurance policy. Now, more of the assets at Bitstamp are protected even while they are held online or during transit in a large range of scenarios. With cryptocurrency adoption growing by the minute, Bitstamp’s total daily trading volumes have increased beyond $3.8 billion. By expanding its insurance coverage, Bitstamp is giving customers an extra level of comfort in the security of their digital assets.
“Bitstamp is committed to bringing the future of value and trust to its users and ensuring that their value is protected,” said Julian Sawyer, CEO of Bitstamp. “This increased coverage provides an extra layer of security and comfort that users have come to expect from top financial institutions like ourselves.”
“The insurance market for digital assets has evolved significantly over the past year but extending protection to Hot Wallet exposures is still a very involved process that remains available to only those operators with mature risk management processes and controls,” said Jacob Decker, Vice President, Director of Financial Institutions for Woodruff Sawyer. “We’re proud to be working with Bitstamp, to set a precedent for other digital assets companies by creating more trust and security in crypto.”
“Bitstamp continue to demonstrate that their security protocols have allowed them to purchase significant limits of crime insurance.” said Jeff Hanson, Senior Vice President at Paragon Brokers. “Bitstamp now provide their customers with protection by virtue of having secured the largest multi-sig digital asset crime placement in the insurance market.”
Bitstamp is dedicated to providing best-in-class service to retail and institutional digital asset investors. The world’s longest-running crypto exchange has built a reputation as one of the most trustworthy and reliable platforms, with the best uptime in their industry, and has consistently ranked in the top 10 spot markets, in terms of volume, for almost a decade.