After a series of due diligence roadshows with industry-leading insurers, the Gemini Cryptocurrency exchange has announced that they have secured insurance coverage for the digital assets that they hold on their client's behalf in their online hot wallet. This furthers their mission to build the future of money by bolstering their commitment to providing you with a safe and secure platform to buy, sell, and store your digital assets. This new coverage complements existing FDIC “pass through” deposit insurance that your fiat funds (U.S. dollars) are eligible for.
To date, insurers have been hesitant to insure the crypto industry due to a large number of high-profile hacks that have resulted in catastrophic losses over the years, and the poor security standards, internal controls, and policies and procedures that have unfortunately characterized much of our industry. As a result, many crypto exchanges and custodians have been either (i) unable to obtain insurance or (ii) shied away from it due to the high cost of premiums required by the few insurers willing to insure the industry. However, they were able to successfully demonstrate to insurers that Gemini, a New York trust company, is indeed a safe and secure exchange and custodian where customers can buy, sell, and store digital assets in a regulated, secure, and compliant manner. Not only is this a tremendous win for Gemini customers but this is also a win for the broader crypto industry in furthering consumer protection.
About the writer: Ava Lauren
I write articles related to bitcoin and other cryptocurrencies. Email me