AVN 68.31 Decreased By ▼ -0.29 (-0.42%)
BOP 8.81 Decreased By ▼ -0.07 (-0.79%)
CHCC 130.00 Decreased By ▼ -2.40 (-1.81%)
DCL 9.14 Decreased By ▼ -0.26 (-2.77%)
DGKC 104.30 Decreased By ▼ -0.83 (-0.79%)
EFERT 60.85 Decreased By ▼ -0.43 (-0.7%)
EPCL 44.30 Decreased By ▼ -0.45 (-1.01%)
FCCL 20.75 Decreased By ▼ -0.73 (-3.4%)
FFL 14.59 Decreased By ▼ -0.33 (-2.21%)
HASCOL 14.25 Decreased By ▼ -0.30 (-2.06%)
HBL 130.00 Decreased By ▼ -0.10 (-0.08%)
HUBC 78.90 Decreased By ▼ -0.70 (-0.88%)
HUMNL 6.30 Decreased By ▼ -0.74 (-10.52%)
JSCL 26.25 Increased By ▲ 2.20 (9.15%)
KAPCO 28.20 Decreased By ▼ -0.60 (-2.08%)
KEL 3.68 Decreased By ▼ -0.13 (-3.41%)
LOTCHEM 12.85 No Change ▼ 0.00 (0%)
MLCF 39.23 Decreased By ▼ -0.17 (-0.43%)
OGDC 97.74 Decreased By ▼ -1.91 (-1.92%)
PAEL 32.54 Decreased By ▼ -0.52 (-1.57%)
PIBTL 12.24 Decreased By ▼ -0.18 (-1.45%)
PIOC 91.00 Decreased By ▼ -0.40 (-0.44%)
POWER 9.52 Decreased By ▼ -0.15 (-1.55%)
PPL 89.57 Decreased By ▼ -1.75 (-1.92%)
PSO 196.00 Increased By ▲ 2.00 (1.03%)
SNGP 42.20 Decreased By ▼ -0.27 (-0.64%)
STPL 14.35 Increased By ▲ 0.25 (1.77%)
TRG 64.90 Increased By ▲ 3.91 (6.41%)
UNITY 25.31 Decreased By ▼ -0.04 (-0.16%)
WTL 1.05 Decreased By ▼ -0.05 (-4.55%)
BR100 4,246 Increased By ▲ 14.71 (0.35%)
BR30 21,392 Increased By ▲ 2.56 (0.01%)
KSE100 40,869 Increased By ▲ 61.49 (0.15%)
KSE30 17,181 Increased By ▲ 20.98 (0.12%)

US virtual currency firm Gemini Trust Company announced on Thursday that it has launched its own insurance unit to boost coverage against theft of crypto assets. Gemini's new in-house insurer, Bermuda-based Nakamoto Ltd, provides a total of $200 million in coverage for virtual currency that Gemini holds on behalf of customers, Gemini said.
Gemini is owned and operated by virtual currency entrepreneurs Cameron and Tyler Winklevoss. The company sees a robust insurance program as a means for the use of virtual currency to become more mainstream, said Yusuf Hussain, Gemini's head of risk.
"Insurance is one of the last hurdles," Hussain said in an interview. "In order for there to be mass adoption, the path forward is a regular, compliant exchange system that clients have become accustomed to in traditional finance." Many types of companies form their own insurers as a way to help cover business risks that can be impossible or too expensive to insure. These in-house insurers are known in the industry as "captive insurers."
The formation of a captive insurer for protecting digital currency held on behalf of customers is a relatively new strategy. Only a few traditional insurers sell insurance for companies that handle virtual currencies like bitcoin and ether, which trade between anonymous parties.
Even then, insurers have typically avoided coverage for coins kept online, or in "hot storage," because of a high risk of hacking. They tend to only cover offline "cold storage," which is also generally preferred by cryptocurrency companies.
Gemini customers can buy additional coverage through a combination of its captive and traditional insurer, said Hussain. As a registered New York trust company, Gemini also carries state-mandated insurance against employee theft, computer fraud, and fund transfer fraud.

Copyright Reuters, 2020