Bitso Becomes the First Insured Exchange in Latin America
Bitso has secured insurance for BTC, LTC, and BCH with plans to continue expanding insurance coverage for the rest of their assets.
Bitso, Latin America’s leading crypto platform, announced that it has purchased an insurance policy on its customers’ cryptoassets, making it the first insured exchange in Latin America. Bitcoin, Litecoin, and Bitcoin Cash are among the first assets to be covered under the insurance policy.
“We’re thrilled to announce this additional protective measure for our customers,” said Daniel Vogel, CEO and Co-Founder of Bitso. “In Latin America, people actively use crypto in their everyday lives, rather than merely speculating on its price. It’s crucial for us to offer our users an extra layer of protection against any potential risks.”
Recommended AI News : UST Acquires ServiceNow Business From Abhra, Inc.
The policy is provided by Coincover, an insurance-backed cryptocurrency protection platform, and underwritten by Lloyd’s of London. It covers the theft of funds for both Hot and Warm Wallets. Underneath the insurance policy lies advanced security measures that comply with the highest cybersecurity standards in the sector. To increase the security of custodial funds, Bitso uses a tiered wallet system. Customer funds are stored in a proprietary solution built in three layers—multisignature (multisig) cold wallets with no connection to the internet, multisig warm wallets with velocity controls and transactions limits, and multisig hot wallets with velocity controls and transactions limits.
Despite its surge in popularity in recent months, cryptocurrency insurance is not widely available for most exchanges. As a result, one of the main challenges for cryptocurrency exchanges is to generate trust among users. By insuring a variety of assets held within their wallets, Bitso provides a secure means to prevent against theft and fraud.
To further ensure the safety of its customers, Bitso has enacted a Custody Business Continuity Plan (CBCP) to mitigate risks that could potentially impact user’s funds. This custody solution is audited by third parties, including the Gibraltar Financial Services Commission (GFSC).
Bitso is positioned prominently within cybersecurity and trust rankings. Bitso ranks eleventh in cybersecurity protection out of the nearly 300 platforms that have been evaluated on CER.live.
Recommended AI News: Seismic Chooses Vengreso for Virtual Sales Training Partnership