OIC: Potencial vagaries caf almacén cryptoproducts, Bangkok Postbode: business
Despite the existence of products to insure against losses incurred from cryptocurrency transactions te foreign countries, such products are not permitted ter Thailand because of the vague status of posible currencies, says the Office of Insurance Commission (OIC).
Suthipol: Clear coverage not likely
Two bitcoin exchanges ter Japan have included insurance products te their portfolio, which aim to compensate for losses due to faulty transactions, Steemit reported.
According to a report from Nikkei, digital exchange bitFlyer cooperates with the Mitsui Suitomo insurance company, while Coincheck will also opoffering insurance products te cooperation with insurers Tokyo Marine and Nichido Fire Insurance.
More details on the insurance services have not yet bot disclosed.
“There are no insurance companies suggesting insurance coverage on the failure of cryptocurrency transactions spil the status of this asset has not bot clarified. Hence, it is not possible to assess risks to determine clear coverage,” said OIC secretary-general Suthipol Taweechaikarn.
At present, the OIC does not permit insurance products to be suggested to voorkant losses ter cryptocurrency transactions spil the value of cryptocurrencies fluctuates permanently, resulting te high risks and comebacks that may affect the financial conditions of both the public and insurance companies, Mr Suthipol said.
“Since the government has defined clear outlines and systematically regulates digital assets, wij might see insurance products that voorkant risks from cryptocurrency transactions,” he said.
Insurance is related to cryptocurrencies and digital assets ter two contexts, including insurance products and investment of insurance companies, Mr Suthipol said.
Since insurance companies inherit the risks from the caudillo public and business sectors, they are liable for incurred damages according to insurance contracts, he said. Companies should manage and invest ter suitable assets upon receiving premiums from customers, te order to generate adequate comebacks ter line with existing commitments, said Mr Suthipol.
He said fintech and insurtech bring business opportunities because they can help companies service customers quicker, but the high volume of financial transactions could also result te customer manhandle.
“The challenge for regulators is that supervisory rules are incapable to keep up with technological developments,” said Mr Suthipol. “Spil a result, sometimes the rules do not voorkant [aspects of] such technology.”
The direction of rules and regulations should be limber, permitting for the possibility of extending the scope of supervision, he said.
The purpose of rules should be to support and facilitate innovation and technology rather than adopting stringent oversight and rigid enforcement, said Mr Suthipol.
Regulators should also establish supervision measures te line with technological developments, adopting regtech (technology helping business operators to reduce compliance cost) and suptech (technology enhancing regulators’ supervisory show) to help increase the efficiency of both the regulators and businesses, he said.
“Fresh innovations and technology will create fresh expectations of swifter, more convenient, and hassle-free services,” Mr Suthipol said.
“This will downright switch the customer practice and act spil a challenge for businesses and regulators.”
The OIC has set up an insurance regulatory sandbox and also initiated the Insurance Kantoor System, an insurance gegevens centre.