US-based cryptocurrency exchange Gemini founded by twins Tyler and Cameron Winklevoss obtained protection for digital assets that are stored in its cryptocurrency repository.

Gemini under insurance protection

Starting from October 1, 2018, Gemini Trust Company LLC, the operator of the Gemini cryptocurrency exchange, provided insurance protection for digital assets. The insurer is the global consortium AON, which provides a wide range of risk, retirement and healthcare insurance products.

This is an additional insurance protection on cryptocurrencies stored in the vaults of Gemini. Earlier, the cryptocurrency exchange had created deposits in US dollars, equivalent to stored cryptocurrencies, and insured these deposits with the Federal Deposit Insurance Corporation (FDIC).

“Consumers are looking for the same levels of insured protection they’re used to being afforded by traditional financial institutions,” said Yusuf Hussain, Gemini’s Head of Risk.

Gemini received insurance coverage after it proved to underwriters that it is "a leading, best-in-class exchange and custodian."

Insurance companies enter the cryptocurrency market

While cryptocurrency services suffer from numerous hacker attacks and theft of cryptocurrency, users are increasingly looking for opportunities to ensure their cryptocurrency deposits. For insurance companies, cryptocurrency is a new and fairly attractive market. Therefore, more and more insurance companies begin to provide appropriate cryptocurrency insurance services.

Thus, the South Korean insurer Hanwha Insurance plans to launch a new corporate product in 2018 focused on cryptocurrency exchanges and other services and protecting them from cybercriminals. The insurance will provide compensation to the affected service in case of leakage of personal data of its users or to reimburse losses caused by hackers in case of theft of cryptocurrencies.