Cybersecurity company Group-IB, in partnership with IT platform CryptoIns, says it has developed “the world’s first rating system to determine the insurance premiums needed to adequately cover crypto assets held on major exchanges.”
The new CryptoIn insurance policy covers losses from cyber hacking of software, theft, fraud and illegal actions of crypto platform employees. CryptoIns now offers its insurance policies to token holders on more than dozens of exchanges.
In describing the structure of the new CryptoIns insurance policy, the company notes that it ranks various crypto exchanges in a number of categories, including “the level of technical security, reliability of storage of keys, passwords and personal customer data provided by each exchange. The evaluation criteria also include individual risk management systems in addition to the rigor of KYC and anti-money laundering AML procedures.
As a result, CryptoIns divided cryptocurrency platforms into four groups based on overall risk. Sites in the first group were found to have the lowest level of overall risk, while the fourth group was designated as “completely uninsured.” The total cost of various CryptoIn insurance policies is based on which group the crypto platform falls into. Base insurance rates start at 2.5 percent per quarter, with discounts applied based on grouping exchanges.
The oldest cryptocurrency exchange Kraken received the highest security rating from CryptoIns and was the only one in the first group with an insurance rate 1.25%.
The second group included Bittrex and Coinbase Pro with a 1.5% fee. Finally, the third group with 1.9 percent insurance premiums includes crypto exchanges Binance, Bitifinex, Bithumb, Bitmex, Localbitcoins, MyEtherWallet and Poloniex. The final, fourth group of least secure exchanges included Zaif, Bitstamp, Bit-Z and OKEx, Huobi Pro and Coincheck.
It should be noted, however, that the results presented by the company are not a true reflection of any real security threat. The company made it clear that it was referring only to perceived insurance risks. That is why Kraken, an exchange with a long history by digital standards and experienced developers, took first place in the insurer's rating.
According to https://www.coindoo.com
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