Crypto businesses find it “almost impossible” to get insurance and this is deterring investors

Cryptocurrency businesses find it “almost impossible” to get insurance and this is deterring investors, Big Four auditor PricewaterhouseCoopers (PwC) told Reuters Dec. 20.

In comments focusing on the global fintech market, Henri Arslanian — the firm’s fintech and crypto leader for Asia — highlighted the contradictory status quo industry businesses face trying to attract funding.

“Most institutionally-minded crypto firms want to buy proper insurance, and in many cases, getting adequate insurance coverage is a regulatory or legal requirement,” he told the publication, continuing:

“However, getting such coverage is almost impossible, despite their best efforts.”

The paradox is made more painful by investors’ persisting high levels of interest in getting into the space, Reuters adds, quoting a September survey that placed such interest at 72 percent among institutional investors.

Following a year of heavy losses for participants and issuers of initial coin offerings (ICOs) in particular, investment and long-term prospects of crypto operators has come under the spotlight once more.

Also read: President of Western Union Global Money Transfer has claimed the company is “ready to adopt any kind of currency,” potentially including crypto

Source: https://cointelegraph.com/news/pwc-warns-lack-of-insurance-access-is-hindering-crypto-businesses