Gibraltar Exchange Obtains Insurance for Crypto Assets as Cyber Attacks Soar

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With cyberattacks on the rise, Gibraltar Blockchain Exchange (GBX) has announced an insurance policy to cover its digital assets in partnership with Gibraltar-based Callaghan Insurance. Cryptocurrencies held in both the hot and cold wallets of the trading platform will be insured. Also read: Report: Swiss City of Zug Named Fastest Growing Tech Hub in Europe Cyber Insurance for Cryptocurrencies “We are delighted to announce the introduction of insurance coverage … this represents an important step in attracting users who require strict assurances around the security of their assets,” Nick Cowan, chief executive officer of GBX, said in a statement on Dec. 10. Cowan said his exchange, licensed by the Gibraltar Financial Services Commission only last month, was “committed to building a platform focused on the highest regulatory standards and the strictest due diligence processes.” The insurance cover ensures that assets in the custody of the GBX are insured. It also means digital currencies held by the exchange for investors will be covered, “providing additional reassurance to a wide variety of traders around security and transparency,” stated the CEO. Cyber Attacks on the Rise Attacks by hackers on exchanges are not uncommon in the fledgling cryptocurrency industry. Estimated losses from cyber crime have topped $930 million so far this year, according to data by U.S. security firm Ciphertrace. As thefts have rocked exchanges worldwide, some platforms have woken up to the need to not only strengthen their security to safeguard investor funds, but also to buy insurance to cover potential losses. This…
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