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The Mexican bitcoin exchange, Bitso, announced that three of the nine cryptocurrencies that are traded on its platform now have an insurance policy. The funds of the operators in bitcoin (BTC), litecoin (LTC) and bitcoin cash (BCH) are insured after establishing an alliance with the company Coincover.
The insurance policy is already active and will soon be extended to all cryptocurrencies offered by the exchange, as reported by Bitso through a statement published on its website. The rest of the digital assets that are exchanged on the exchange, but are not yet insured are: ether (ETH), trueUSD, XRP, DAI, MANA and BAT.
«This policy is underwritten by Lloyd’s of London and covers the theft of funds in our hot and warm wallets (…) the contracting of this insurance policy is an additional element of our strategy to mitigate the risks that could impact our users’ funds ”, reported the exchange.
With the incorporation of the new insurance policy for funds in cryptocurrencies, Bitso becomes the first exchange in Latin America to offer this type of services to its users . Activation would allow operators to recover their funds in case of hacking or theft.
The company does not It offered details on what coverage applies in the event of a security breach. That is, it is unknown if the policy covers 100% of the funds that are stolen or would be limited to a percentage of them.
Protocol for the protection of bitcoin
The custody of cryptocurrencies in Bitso is carried out with a proprietary protocol that includes a system of hot, “warm” and cold wallets. Each type of wallet or wallet fulfills a specific function to carry out transactions on the platform .
Hot wallets are connected all the time and allow immediate availability of cryptocurrency funds, while “warm” wallets require manual operations. Cold wallets represent a higher level of security and remain disconnected from the Internet .
«All our wallets are configured with speed controls and transactional limits, as well as a multi-signature system (multisig). This multi-signature system implies that there are at least two or more participants in the signing of the transactions “, highlighted the exchange house.
According to CoinGecko records, Bitso maintains a daily volume of deals of about 20 million dollars with 24 active pairs. The one with the highest demand is that of bitcoin against Mexican pesos (BTC / MXN) which reaches a daily sale of 8.7 million dollars.
Bitso is one of the most recognized bitcoin exchanges in Latin America. CriptoNoticias reported in December last year that the company had raised $ 62 million to expand in the region. It currently has operations in Mexico, Brazil and Argentina with 1.6 million users. The company also obtained, in July 2019, a license to legally operate in Europe.