Global adoption of cryptocurrencies may be closer than we imagine as more industries come to deploy the power of decentralized financial systems. In Asia, more firms are looking at how blockchains can power the next phase of their development. Hong Kong, one of Asia’s largest economic and political bastions, has now made history as the first Asian country to get a crypto-powered insurance policy.
An insurance firm in Kong Kong, OneDegree Hong Kong, has now become the first in Asia to fuse insurance and cryptos together. OneDegree Hong King would hope to set the pace for crypto adoption in the insurance industry across the world, beginning from Asia.
A Beautiful Partnership
OneDegree Hong Kong is teaming up with a Hong Kong-based cryptocurrency company called HKbitEX to drive the project. HKbitEX is a licensed asset exchange that provides a platform for local transactions. In teaming up with the multi-insurer, OneDegree Hong Kong, HKbitEX hopes to bring the benefits of blockchain to insurance as they both work to provide insurance cover of up cryptocurrencies worth up to $100 million.
The insurance policy covers the loss of crypto funds from trading platforms due to physical damage and theft from unauthorized entry gained through malicious software attacks or employee compromise. Both OneDegree Hong Kong and HKbitEX will work together to provide insurance in line with government regulations and will collaborate to ensure that insurance conditions are strictly complied with.
According to the news article retrieved from The South China Morning Post, OneDegree Hong Kong is open to sharing details of its policies with other insurance firms in the industry that are interested in adopting cryptocurrency insurance policies. On its part, HKbitEX is working towards increasing the support and trading capital from institutional traders. HKbitEX has thousands of asset managers that are licensed to operate on its platform and perform market transactions on behalf of clients.
With its partnership expected to yield benefits, there could be a potential increase in the number of asset managers and investors on HKbitEX.
Crypto Insurance and Regulation
Asia is only beginning a journey that has reached an advanced stage in the US. Crypto insurance policies in the US are one of the strongest reasons why many US investors are turning to crypto. In Asia, the previous lack of crypto insurance has strongly deterred investors who feel that they are putting their money into an uninsured and unregulated system without a guarantee of making profits or recovering their capital.
The Asian investors have good reasons to be wary; Asia is a hotspot for some of the biggest crypto scams and thefts pulled in recent years. For investors to gain enough confidence to invest more and grow the industry, innovative partnerships such as the OneDegree Hong Kong and HKbitEX partnership will be necessary.
In the US, crypto insurance is a huge sub-industry that attracts hundreds of millions of investments. Yet, more efforts and funds are needed to combat the growing spate of attacks on digital assets in the crypto industry.
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