Gemini, the crypto exchange of the crypto-enthusiasts Winklevoss brothers, can now come up with an insurance company for digital Assets. Thus, the Exchange is able to dispel concerns about a lack of investor protection and important signals to regulators to send.
Unclear regulatory environment, high volatility and lack of investor protection: The reasons why, in itself, crypto-curious investors respect hold full distance to the Bitcoin & co., are manifold and depend on each other. At least in terms of investor protection, there is now a progress: The New York-based crypto-exchange, Gemini has the 3. October announced that she is now also for the digital Assets of insurance coverage. Good news for hesitant investors, the regular reports of Hacks centralized crypto stock exchanges so far – not quite wrongly – quenching.
“After a series of Due Diligence Roadshows with industry-leading insurers, we are pleased to inform you that we are able to guarantee the insurance protection for the digital Assets [ … ]”,
Geminis Head of Risk, Yusuf Hussain announced, on 3. October proud of Medium.
The previous Hesitation of the insurer based on the catastrophic losses caused by large-scale Hacks of crypto-exchanges. Poor safety measures and weak internal control mechanisms of the stock markets have moved the industry in a bad light. Conversely, the crypto-exchanges had been hesitant about digital deposits. The reason is that The few insurers that would be willing to charge very high fees.
Gemini had succeeded, the insurer of your trust to convince you:
“We were able to demonstrate to the insurers, however, successfully, Gemini […] is in fact a secure exchange and Trustee of the customer’s digital Assets to a regulated, secure and compliant way to buy, sell, and store.”
A Signal for the entire crypto industry?
So far, this insurance protection in the case of Gemini, only for Fiat deposits in US dollars. These are covered by the Deposit insurance Fund of the FDIC (Federal Deposit Insurance Corporation). The FDIC is on your Homepage, for damages in the amount of at least $ 250,000 per depositor and Bank – to pay. The same applies for the Gemini managed deposits in Bitcoin, Ether, and Zcash.
The message could develop a jet force for the whole crypto-industry. Of Yusuf Hussain are at least convinced of this:
“This is not only a huge win for the Gemini’s customers, but also to benefit the broader crypto-industry by foster consumer protection.”
Recently Gemini has made in September caused a stir, as the crypto-exchange, the Winklevoss brothers Tyler and Cameron a gift of a regulated and price-stable”,” Stable “Coins” GUSD known was the.