Users of Hashkey Exchange Hong Kong look set to receive something of a security boon as the firm pens an MOU with fintech firm, OneDegree. This intriguing deal proposes a new insurance coverage plan applicable to both hot and cold storage addresses for all digital assets on the exchange platform. Could this usher in a new era of bandwidth in terms of security measures within the crypto space?
Hashkey strives continuously to improve the financial, technical, and service infrastructure available to its customers, according to COO, Xiaoqi Weng. This latest move speaks to this commitment as it seeks to offer customers wide-ranging, more comprehensive, protection. The move isn’t without its opponents, however. Skeptics argue that cryptocurrencies demand a structurally robust framework, including things like insurance to detect and mitigate every conceivable risk. It’s a tall order.
Further bolstering Hashkey’s commitment to digital asset security, the firm recently became the first cryptocurrency exchange to acquire a regulatory license from Hong Kong’s Securities and Futures Commission, thus allowing services to retail investors. As it stands, users can only trade BTC and ETH on HashKey Hong Kong, with neither margin trading nor crypto derivatives trading currently available.
Amid an industry rife with disagreement over user insurance, it’s worth noting that some exchanges do not offer customers any form of insurance protection, save for a mere contractual claim to their assets in the event of bankruptcy. On the other end of the spectrum, some exchanges offer users an insurance scheme that covers incidents related specifically to cryptocurrency. And caught in the middle of it all, some exchanges provide insurance on users’ fiat deposits alone.
Still, this move by Hashkey and the subsequent partnership with OneDegree does seem to signal a promising trend towards insurance coverage that not only fosters trust but also elevates the perceived legitimacy of the crypto market to the wider investor community.
Indeed, amid the relentless tug-of-war over user insurance within the industry, the signing of this MOU may well kickstart a larger conversation around the ins and outs of insurance coverage for digital assets that could reshape the industry as we know it.
Source: Cointelegraph
