Crypto insurance
(Syeda Zehra Naqvi, Karachi)
In the world of crypto currency, there is a huge risk of loss and theft.
Crypto insurance covers risks such as loss or damage of crypto currencies due to
frauds, hacking and many more issues. The emergence of crypto insurance is
driven by unique challenges of the crypto ecosystem. Crypto currencies are
stored in digital wallets and are susceptible to hacking or theft, making them
attractive targets for cyber criminals therefore crypto insurance companies aim
to provide coverage for crypto assets and associated risks.
The coverage provided by companies can vary depending on specific insurer and
policy terms. Some policies may offer protection for the full value of the
insured cryptocurrencies while others may provide coverage up to a certain
limit.
However, it is important to note that the crypto insurance market is still new
and revolving. The industry is working to establish standardized practices and
enhance the overall security of the crypto ecosystem. As the technology matures
and the regulatory framework develops, crypto insurance is expected to become
widespread providing increased protection and stability to participants in the
crypto industry.