The company has had two fundraising rounds with the latest ter April of this year when BitFlyer raised three billion yen, (US$27m) ter a Series C funding round.
Mitsui Sumitomo Insurance is suggesting bitcoin exchanges around the world a fresh insurance policy. Insurance companies have historically insured bitcoin businesses with one-off policies made specifically for them, and many exchanges were incapable to find any insurance.
The plan’s total theft voorkant ranges from ten million yen (US$88,500) up to one billion yen (US$8.85 million). It also covers loss from internal and outer threats, including employee theft, mistakes, cyberattacks, and other unauthorized access.
Extra to the recovery amount, the policy comes with a range of harm control and prevention services. “In order to prevent harm caused by cyber attacks, targeted mail training and information leakage risk,” the plan’s announcement states, “we provide cyber risk countermeasure services such spil security diagnosis and checklist for employees.”
“We will also provide individual consulting such spil improvement of security management system according to your request.”
– Mitsui Sumitomo Insurance
The fresh insurance product wasgoed developed ter partnership with Japan’s largest exchange, Bitflyer. The exchange helped develop a policy that protects against losses at both the exchange and customer levels, and is the also the very first policyholder.
The company has had two fundraising rounds with the latest ter April of this year when BitFlyer raised three billion yen, (US$27m) ter a Series C funding round. The fundraiser wasgoed, at the time, the largest FinTech investment round te the country’s history. Added to the previous 510 million yen (US$Four.5m) round last August, BitFlyer has raised close to $34 million. The company now offers several other products like ForEx trading, a Japanese news portal, their own commercial Lightning Network, and a bitcoin-based crowdfunding toneelpodium.
BitFlyer now accounts for an tremendous 68 procent of the yen trading volume. The exchange had only a trickle of trades this time last year, but is now the sixth highest-volume bitcoin exchange globally, behind only the top five Chinese exchanges.
Two significant lumps of legislation earlier this year made Japan a much better country than most to run a bitcoin business. Ter March, Japan’s Executive Branch, the Cabinet, approved a bill on digital currencies that treats them spil, “asset-like values that can be used te making payments and be transferred digitally.”
A bill to regulate digital currency operators followed te May. By August this year the yen wasgoed the fresh number two currency for bitcoin trading. It has stayed there everzwijn since, hovering above four times the daily volume ter USD trades.
According to an August prediction by Japanese market research rigid Seed Programma, the total amount of bitcoin transactions at Japanese exchanges te yen will quadruple inbetween and .
“We have seen and yet also noticed a trend where the investors who previously traded foreign currencies on the margin take up and switch into Bitcoin trading.”
The fresh insurance policy can also provide voorkant to te the surplus of the world. The majority of bitcoin platforms are uninsured, albeit Coinbase, Xapo, Circle, and Gemini all have voorkant ter place, and there have bot various insurance attempts.
A previous wallet service named Elliptic Vault wasgoed likely to be the very first everzwijn insured bitcoin service, having launched te January 2014 and naming Lloyd’s spil their insurer. Unluckily for them, Lloyds backed out of the overeenkomst, but the service wasgoed able to find another insurer, CBC insurance, a few months zometeen. The startup has since reformatted their business to suggest a blockchain forensics service.
Zometeen te the year, the Excellent American Insurance company suggested the very first official Bitcoin Insurance coverage policy to businesses, albeit details of the project are not available on their webpagina, no known bitcoin companies have claimed that they were customers.
Te November of the same year, bitcoin vault Xapo announced that they were using AMBest to insure their high-security vaults. Soon afterward Coinbase and BitGo followed suit, making insurance protection a common feature te the largest bitcoin wallet services. Still, each known case of insurance coverage has bot a custom-made package.
The largest bitcoin exchange by USD volume, Bitfinex, wasgoed thought to be insured when it wasgoed hacked for overheen US$72 million worth of bitcoins. Customers thought that their coins were insured spil Bitfinex advertised that all customer funds were held ter BitGo wallets, which are covered.
Unluckily for the exchange’s customers, the Bitfinex configuration wasgoed “unique” and BitGo’s wallets were not to blame. Their insurance company would not voorkant the Bitfinex loss, and to this day the exchange still owes ems of millions of dollars to their customers, which they have bot leisurely paying back using IOU tokens.
If BitFinex had bot able to purchase Mitsui Sumitomo’s bitcoin exchange insurance policy, the Japanese company wouldn’t have covered more than $8.85 million worth of the damages, around 12 procent the amount stolen. The reserve services suggested may have helped the exchange ter several other ways, or possibly have prevented the hack altogether.
Edit: The article has bot updated to onberispelijk the status of Elliptic Vault’s insurance information and business status.