European cryptocurrency exchange Bitstamp has introduced a new insurance policy that covers the theft of funds from platform users.
“In addition to existing cold wallet insurance, Bitstamp customers are now protected by a separate insurance policy against losses that are related to criminal activity,” the exchange said on its blog.
The insurance policy will be provided by Paragon International Insurance Brokers and Woodruff-Sawyer.
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The policy applies to digital assets stored on Bitstamp, both offline and online, and covers many insurance claims that are related to crimes (theft involving exchange employees, theft when transferring funds, loss of funds due to fraud, etc.).
The policy will complement the existing insurance of assets that are stored in the exchange's cold wallets. According to Bitstamp, about 98% of all digital assets are held in cold (offline) wallets, which are protected by an insurance policy from the custodian company BitGo.
Bitstamp transferred the assets to BitGo in October 2019. In September, Bitstamp announced the completion of the integration of the Nasdaq order matching system.