Several years ago, cyber insurance was new on the horizon and considered an unnecessary option for employers not involved in the financial industry. Now crypto insurance is the new kid on the block. Mainstream financial and tech companies may be finding some comfort with crypto, however the associated risks are off-putting for carriers who are historically conservative. Insurance against theft and especially transaction underwriting may be difficult to find at present, but within five years, it will likely be run of the mill.
For individuals who may be interested to wade in and are wondering about US government regulation, rest assured that Uncle Sam is taking an interest. When many of us first invested in crypto about four years ago, the applications were a little sketchy and US investors received no special attention. Now Binance, a cryptocurrency investing application, has been forced to set up a separate iPhone application for US investors who are now required to provide several more forms of ID than are requested from investors hailing other countries.
Any thought that the federal government is looking to tax profits that may accrue?
Brokers estimate that there are two dozen or so carriers that consider providing cold-wallet crypto coverage, but insurer capacity is constantly changing and many are still unwilling. That partly stems from a lack of understanding about cryptocurrencies and how they work.