Bitso, a Latin America-based bitcoin exchange, today announced that it has purchased an insurance policy on its customers’ crypto-assets, making it the first insured exchange in Latin America.
The policy is provided by Coincover, an insurance-backed cryptocurrency protection platform, and underwritten by Lloyd’s of London. It covers the theft of funds for both hot and warm wallets.
To increase the security of custodial funds, Bitso uses a tiered wallet system. Customer funds are stored in a proprietary solution built in three layers:
- Multisignature (multisig) cold wallets with no connection to the internet;
- Multisig warm wallets with velocity controls;
- Transaction limits, and multisig hot wallets with velocity controls and transaction limits.
Also, to further ensure the safety of its customers; Bitso has enacted a Custody Business Continuity Plan (CBCP) to mitigate risks that could potentially impact user funds. This custody solution is audited by third parties, including the Gibraltar Financial Services Commission (GFSC).
“We’re thrilled to announce this additional protective measure for our customers. In Latin America, people actively use crypto in their everyday lives and it’s crucial for us to offer our users an extra layer of protection against any potential risks.”
– Daniel Vogel, CEO and Co-Founder of Bitso