DeFi insurance protocol InsurAce says it was well within its rights to reduce the claims period for people affected by the Terra USD (UST) depeg event from 15 days to seven — but added it has already processed nearly all 173 submitted claims and will pay out $11 million. InsurAce (INSUR) is the third largest insurance provider for decentralized finance (DeFi) protocols, with a market cap of $15 million. On May 13, InsurAce caused a stir when it announced it had shortened the claims window for those with cover related to Anchor (ANC), Mirror (MIR), and stablecoin Terra USD (UST) …

Cryptocurrency markets have been maturing over the last few years, making demand for crypto insurance solutions larger as more advanced players dip their toes into the nascent ecosystem. Investopedia reports that cryptocurrency insurance is seen as a “big opportunity,” with a spokesman from one of the world’s largest insurers, Allianz, saying that the company has explored product and coverage options in the cryptocurrency space as it becomes “more relevant, important and prevalent on the real economy.” The cryptocurrency ecosystem is still seen as dangerous and volatile, where funds aren’t completely secure even on leading cryptocurrency exchanges. While some platforms, including …

The Federal Deposit Insurance Corporation, the United States government corporation that insures depositors at U.S. commercial and savings banks, issued a financial institution letter Thursday. The letter requests the institutions supervised by the agency to notify the appropriate regional director of their activities with crypto-related assets or their intentions to engage in crypto-related activities. According to the letter, “It is difficult for institutions, as well as the FDIC, to adequately assess the safety and soundness, financial stability, and consumer protection implications without considering each crypto-related activity on an individual basis.” Consequently, the FDIC wants to receive all information necessary for …

Insurance company Lemonade has partnered with prominent blockchain companies to form the Lemonade Crypto Climate Coalition (L3C) decentralized autonomous organization (DAO) to protect farmers from climate change by offering blockchain-based insurance. The insurance firm founded Lemonade Foundation, a nonprofit focused on creating social and environmental change with the use of blockchain-enabled technologies. The foundation will work closely with members of the L3C including Chainlink, Avalance, DAOstack, Etherisc, Hannover Re, Pula and Tomorrow.io. The climate insurance will take the form of a decentralized application (DApp) on the Avalanche platform. The DApp will also enable farmers to make and receive payments using …

House Financial Services Committee member and New Jersey Representative Josh Gottheimer has introduced legislation which would have the Federal Deposit Insurance Corporation back stablecoins in a similar manner to fiat deposits. In a draft of the Stablecoin Innovation and Protection Act of 2022 released on Tuesday, Gottheimer proposed labeling stablecoins issued by insured depository institutions or certain nonbank issuers as “qualified.” Under this definition, the bill suggests “qualified stablecoins” are neither securities or commodities under U.S. law, and redeemable on demand from the issuer. In cases of nonbank issuers, the legislation would require the Federal Deposit Insurance Corporation, or FDIC, …

Binance, the world’s leading crypto exchange by trading volume, announced its Secure Asset Fund for Users (SAFU) reached a $1 billion valuation. The user protection insurance fund was set up in July 2018 to protect users’ interests. Binance committed a portion of the trading fee towards SAFU and began allocating 10% towards the funds. The crypto exchange also revealed the two wallet addresses where the funds are being held in order to ensure transparency. The two wallets contain a billion-dollar worth of crypto in BUSD, BNB and BTC. Changpeng Zhao, the CEO of Binance, urged other crypto platforms to follow …

There is always going to be risks involved with interacting with cryptocurrencies and recent proof of this can be seen over the past few weeks after savvy hackers managed to abscond with millions of dollars worth of tokens from Bitmart, AscendEX and BadgerDAO exchange. Nexus Mutual is a decentralized platform that allows investors to secure insurance coverage against smart contract exploits and today the altcoin rallied by 38% even as Bitcoin and the wider crypto market continue to correct. Data from Cointelegraph Markets Pro and TradingView shows that after hitting a low of $46.59 on Dec. 13, the price of …

A major Asian insurer has ventured into Bitcoin (BTC), in an attempt to provide a model for other businesses in the field. Multi-line insurance firm OneDegree announced on Thursday that it is partnering with Hong Kong Bitcoin Exchange (HKbitEX) to provide protection for the latter's ON1ON custody platform. OneDegree claims to be the first Asia-based insurance provider for digital assets, having insured $100 million in digital assets under HKbitEX's custody. Insurance demand for digital assets is growing and insurance and risk management for digital assets will boost investor confidence and help the market develop, according to OneDegree. Third-party insurance covers …

Price action in the crypto market has not been for the faint of heart over the past 48-hours and it's clear that volatility following Bitcoin (BTC) and Ether’s (ETH) breakouts to new all-time highs. While the top two cryptocurrencies fight to hold key support levels, the altcoin market has seen a handful of tokens post double-digit gains on Nov. 5 and Cointelegraph Markets Pro’s altseason indicator suggests the current market conditions line up with previous altseason price moves. Data from Cointelegraph Markets Pro and TradingView shows that the biggest gainers over the past 24-hours were XYO Network (XYO), Crypto.com Coin …

Ethereum-based (ETH) decentralized finance, or DeFi, risk management marketplace Risk Harbor will soon take over control of Terra's Ozone Protocol, according to a press release published on Thursday. Ozone is a decentralized insurance mechanism that provides coverage in the event of technical failures on the Terra DeFi ecosystem. The latter is a dual-token platform that features its governance token LUNA and stablecoin Terra USD (UST), which has an exchange rate of 1:1 with the U.S. dollar. UST has no underlying USD reserves backing it. Instead, it's collateralized via an algorithm by LUNA, and users can earn rewards by using LUNA …

Digital currency exchange Crypto.com has expanded its insurance policy to cover up to $750 million worth of digital assets, offering an additional layer of protection for the platform’s 10 million users. The new policy, effective since Sept. 6, is backed by Arch Underwriting, a division with Lloyd’s Syndicate 12, the company announced Monday. The policy, which includes both direct and indirect custodian coverage, applies to Crypto.com’s cold storage assets held on Ledger Vault. The policy is the largest in the cryptocurrency industry, exceeding the over $700-million coverage purchased by digital custodian BitGo earlier this year. Digital asset companies are expanding …

In a candid open letter, the lead contributor of Cover and Ruler Protocol, “DeFi Ted,” announced the protocol will close its virtual doors in the near future, citing a mass developer exit as the primary reason for the project’s conclusion. Launched earlier this year, the Ethereum-based decentralized finance (DeFi) insurance marketplace enabled users to stake Cover tokens as collateral and receive insurance payouts if their assets in other DeFi protocols are hacked or rug-pulled. In December 2020, the Cover protocol suffered a catastrophic exploit when a hacker minted 40 quintillion tokens, stratospherically increasing the token supply and effectively rendering the …