Under rules set by Hong Kong’s Securities and Futures Commission, licensed crypto exchanges must have a minimum of 50% insurance coverage for assets held on behalf of customers.
OSL Exchange has recently announced a partnership with insurance provider Canopius, which will cover 95% of its users’ assets for a period of two years.
HashKey Exchange has also entered into an agreement with OneInfinity to provide insurance coverage, including for incidents related to server downtime and data management.
Each of these exchanges are among the few companies to hold virtual asset trading licenses in Hong Kong, as stricter requirements have been put in place since retail investors were allowed to trade crypto last August.
The licensing process includes thorough checks, such as traditional financial audits, to ensure the security and legitimacy of these exchanges.
