HashKey signs MOU for crypto exchange insurance

Zhiyuan Sun6 hours agoHashKey signs MOU for crypto exchange insuranceThe policy would potentially cover both the exchange"s hot wallets and cold storage addresses.1479 Total views23 Total sharesListen to article 0:00NewsJoin us on social networksUsers of HashKey Hong Kong will soon be able to receive insurance protection on digital assets custodied on the platform.

According to local news reports on Sept. 6, HashKey has signed a memorandum of understanding with fintech firm OneDegree for insurance coverage on exchange wallets. The insurance policy will apply to both hot wallets and cold storage addresses.

Xiaoqi Weng, chief operating officer of HashKey, said the firm seeks to “improve the financial, technical and service infrastructure to provide customers with more comprehensive protection” and expand its contribution to Hong Kong’s digital asset ecosystem. Yanlin Guo, co-founder of OneDegree, said cryptocurrencies require a “strong framework including insurance to identify and mitigate all potential risks."

On Aug. 3, HashKey became the first cryptocurrency exchange to receive a regulatory license from Hong Kong’s Securities and Futures Commission to offer services to retail investors. On Aug. 28, the exchange debuted trading services, although its volume remains somewhat low, with only $122,514 worth of crypto changing hands in the past 24 hours. 

Currently, users can only trade Bitcoin (BTC) and Ether (ETH) on HashKey Hong Kong. Neither margin trading nor crypto derivatives trading is available. The exchange supports U.S. dollar and Hong Kong dollar fiat deposits from authorized financial institutions worldwide. 

Exchange user insurance has been a matter of significant controversy within the industry. Some exchanges do not provide users with insurance protection, except for a simple contractual claim to their assets in the event of bankruptcy. Other exchanges only offer insurance on users’ fiat deposits, while some, such as Binance and Bitget, provide insurance programs that cover crypto-related incidents.

Magazine: Can you trust crypto exchanges after the collapse of FTX?# Cryptocurrencies# Hong Kong# Business# Cryptocurrency ExchangeAdd reactionAdd reactionRead moreWhat are NFT royalties, and how do they work?How to handle crypto trading gains and losses on your balance sheetCrypto VC: Risk and investment strategies with Shima Capital