A Major Insurer is Developing a Policy to Cover Bitcoin Exchanges

A Japanese insurance firm is reportedly planning to launch a new policy line aimed at bitcoin exchanges.

AccessTimeIconNov 28, 2016 at 5:33 p.m. UTC
Updated Sep 11, 2021 at 12:38 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

A Japanese insurance firm is reportedly planning to launch a new policy line aimed at bitcoin exchanges.

According to Nikkei, Mitsui Suitomo Insurance is working with Tokyo-based bitcoin exchange bitFlyer to develop the policy. The publication reported that the insurer will offer as much as 1bn yen (roughly $9m USD at press time) in terms of coverage, with premiums ranging as high as “several million yen”. It’s not immediately clear when the insurance product would be launched.

The launch within Japan would be notable given the collapse of Mt Gox, the now-defunct bitcoin exchange that fell apart in 2014, resulting in the loss of hundreds of millions of dollars worth of bitcoin. While the Mitsui Suitomo policy would only cover a fraction of that amount, the launch could offer a degree of comfort to users, as well as regulators overseeing activity in the digital currency exchange space.

News of the insurance product comes as Japan’s financial services industry adopts a generally more aggressive stance toward digital currencies and blockchain.

, a group of 42 Japanese banks joined SBI and distributed ledger startup Ripple to form a new cross-border payments consortium. Individual firms, particularly banks, have tested a variety of applications in recent months.

Japan’s government has set the stage for such action as well.

In October, local sources reported that national finance regulators were weighing whether to scrap a sales tax on bitcoin purchases. Regulators and members of the country’s legislature have already moved in the past year to rethink bitcoin exchange oversight.

Image via Shutterstock

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.