Cyberinsurance Providers are Coming for Cryptocurrency Exchanges

A useful development around crypto exchanges is the emerging security breach insurance market. While data breaches are becoming a weekly occurance, the impact in loss of data is harder to quantify than the loss of crypto assets.

In the past there were certainly breaches of the underlying blockchain protocol as it got more complex (Ethereum DAO hack and hard fork reversal). It is much more common to see exploits of vulnerabilities in the traditional network stack, servers and databases. As the blockchain industry’s inherent security stack improves, most breaches will continue targeting the systems underpinning the blockchain and APIs connecting to it.

Insurance will be one way to address the weakness in building more secure and enterprise ready exchanges.  This can augment the improvement of security practices of storing private keys and wallets outside the connected network infrastructures.

Source: Cyberinsurance Providers are Coming for Cryptocurrency Exchanges

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