Hong Kong firm to offer insurance for Asian cryptocurrency holdings

A major Asian insurer has ventured into Bitcoin (BTC), in an attempt to provide a model for other businesses in the field.

Multi-line insurance firm OneDegree announced on Thursday that it is partnering with Hong Kong Bitcoin Exchange (HKbitEX) to provide protection for the latter's ON1ON custody platform. OneDegree claims to be the first Asia-based insurance provider for digital assets, having insured $100 million in digital assets under HKbitEX's custody.

Insurance demand for digital assets is growing and insurance and risk management for digital assets will boost investor confidence and help the market develop, according to OneDegree.

Third-party insurance covers physical damage to wallets caused by natural occurrences, cybersecurity risks such as outside hacking or malware attacks, and employee intentional or fraudulent acts.

Following the announcement, HKbitEX co-founder Ken Lo stated that he wants additional institutional investment in cryptocurrencies. He continued:

"With over 1,800 licensed asset managers, Hong Kong is home to over US$3 trillion in assets under management. We want to help asset managers enter this market in ways that enable them to also fulfill their fiduciary duties to their end investors."

The company said it is creating more technological solutions to assist crypto market participants in avoiding risks. In addition to its in-house cybersecurity platform Cymetrics, the tools will assist clients to assess their cyber risk and manage the, according to the firm.

As reported, Hong Kong's Securities and Futures Commission is currently reviewing rules covering virtual currency transactions, including whether individuals can invest in crypto-related exchange-traded funds.

Hong Kong is one of the world's most important and prominent financial hubs. It has had a significant impact on cryptocurrency innovation. For example, the city-state has given birth to some of the most well-known and successful crypto firms to date, including the cryptocurrency derivatives exchange FTX and the digital asset platform Crypto.com.