Have S Korean Exchanges Solved their Insurance Riddle?
South Korea’s biggest group of cryptocurrency exchanges, the Korea Blockchain Association (KBA) has seemingly made a breakthrough in its quest to find an insurance solution for the country’s exchange platforms.
Per media outlet Newsis, the KBA has announced that Hanwha General Insurance is now its “preferred insurer.” The association confirmed that the company will help exchanges to ensure their platforms and networks meet the terms of its coverage.
Both the KBA and Hanwha had looked at a number of possible solutions to the insurance conundrum, and had considered a bulk policy that would provide coverage for all KBA members. However, the parties concluded that the needs and operations of the KBA’s members differed in too many aspects to make a bulk policy possible. Hanwha General Insurance will instead look to offer KBA members packages on an individual basis only.
Exchanges have been keen to find insurance products that will help them repair the financial losses of potential security breaches in the wake of several major, damaging hacks over the past year – including recent attacks on Bithumb and Coinrail.
Hanwha General Insurance is owned by a major South Korean conglomerate, the Hanhwa Group. The group is also active in construction, chemicals, energy and the leisure industry.
The KBA held extensive talks with Hanwha General Insurance prior to the announcement, and had held discussions with other major South Korean insurers, such as Heungkuk.
As previously reported on Cryptonews.com, insurance has long been an issue for South Korean cryptocurrency exchanges. Although a number of the KBA’s most prominent members, such as industry leaders Bithumb and Upbit, have taken out multi-million dollar insurance policies that cover financial losses due to hacks, finding an insurer willing to offer comprehensive coverage has been a struggle for many.