To what extent are your cryptocurrencies insured?

• FIDC considers insurance policies for cryptocurrencies while currently it insures up to $250,000 under general conditions. 
• Currently, the insurance for the cryptocurrencies exists and are anchored to exchanges and wallets. 
• Insurance sector could see shiny days if regulations are validated. 

As the world of cryptocurrencies grew into the mainstream and appealed to the asset class, many other businesses that aid transactions, like the insurance sector, have brimmed up to the heat of cryptocurrencies. Investors who own stocks, bonds and other securities can lay upon the protectiveness of either US government or private agencies, however the same cannot be stated true for crypto investors entirely. 

 An independent agency under the United States Federal government, Federal Deposit Insurance Corporation (FDIC) currently has no special provisions for the crypto sector, however it generally insures up to $250,000 per person in a bank under the general schemes as it covers all savings accounts, various deposit accounts and checking accounts. 

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Although, FDIC has partnered with the Federal Reserve (FED) and office of the comptroller in an initiative towards insurance of the tokens called the Crypto Asset Policy Sprint. According to the FDIC chairman, Jelena McWilliams stated that the agency was in process with the authorities to study and coordinate to study cryptocurrencies and construct policies for under which circumstances the banks can engage involving cryptos. 

According to an insurance analyst at Insurance quotes, Brian O’Connell mentioned that there exists few types of private insurances but aren’t availed by or targeted towards consumers, rather are brought by exchanges and wallets, the coverage of such policies include the events of crime and theft, business insurance and custodial coverage.  

However, a cryptocurrency protection platform backed by insurance, CoinCover has various schemes of protection from a minimum of $1000 to $10million plus for various wallets owned by corporations.  It offers protections for wallets like Vesto, BitGo etc from theft and loss consequential from cyber attacks or local targeted hacks. 

According to O’Connell, the insurance sector in the crypto space hasn’t begun to see offerings as cryptocurrencies are still a major risk for various companies because of intense scrutiny and unregulated states of the same. However, as the 21st century watches the crypto sphere into adoption, it is expected of governments to regulate the market and bring tame to the wild west feels to cryptocurrencies, which consequently could provide room for various insurance companies to construct policies and safeguard investors from various crimes and maybe even in the uneventful place, where users lose their private keys.