HashKey Hong Kong to Provide Insurance Protection for Digital Assets
As a crypto reader, you will soon have the opportunity to receive insurance coverage for your digital assets on HashKey Hong Kong. This development comes as HashKey has signed a memorandum of understanding with fintech firm OneDegree to provide insurance for exchange wallets. Importantly, this insurance policy will cover both hot wallets and cold storage addresses.
By partnering with OneDegree, HashKey aims to enhance the financial, technical, and service infrastructure to offer customers comprehensive protection. Additionally, this move seeks to contribute to the digital asset ecosystem in Hong Kong. Recognizing the need for a robust framework, including insurance, Yanlin Guo, co-founder of OneDegree, highlights the importance of identifying and mitigating potential risks associated with cryptocurrencies.
In August, HashKey made history by becoming the first cryptocurrency exchange to receive a regulatory license from Hong Kong’s Securities and Futures Commission for retail investor services. Although trading services have been introduced, the exchange’s current trading volume remains relatively low. Users on HashKey Hong Kong can currently trade Bitcoin (BTC) and Ether (ETH), with no options for margin trading or crypto derivatives trading. The exchange accepts U.S. dollar and Hong Kong dollar fiat deposits from authorized financial institutions worldwide.
Hot Take: The Significance of Exchange User Insurance
The topic of exchange user insurance has sparked debates within the industry. While some exchanges only provide contractual claims to assets in the event of bankruptcy, others offer insurance solely for fiat deposits. However, there are exchanges like Binance and Bitget that go beyond and provide insurance programs covering crypto-related incidents. As a crypto reader, it’s essential to understand the level of insurance protection available to you and assess the associated risks when choosing a cryptocurrency exchange.
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