Japanese Bitcoin Exchange Launches Insurance Product

Rage Review : Two Japanese bitcoin exchanges are launching non-life insurance products to protect against losses associated with failed transactions. Although exact policy details could not be immediately provided, the products are said to be designed to consolidate confidence in digital currency transactions. Shortly before the move was launched, the Japanese government officially recognized bitcoin as a legal payment method, forming a regulatory framework for the country's digital currency exchanges.

Translation: Clover

Two Japanese bitcoin exchanges are launching insurance products aimed at protecting against losses associated with failed transactions.

According to a report from Nikkei, bitFlyer is working with Mitsui Suitomo Insurance, a subsidiary of MS&AD Insurance Holdings Group, to provide non-life insurance products. The product is expected to be launched today.

Coincheck, another domestic bitcoin exchange, is launching a similar product with Tokio Marine and Nichido Fire Insurance.

While exact policy details could not be immediately provided, the products are said to be designed to underpin confidence in digital currency trading. In the case of bitFlyer, the policy will cover losses at retailers that accept bitcoin if a customer’s transaction doesn’t go through due to technical issues.

“If stores don’t want to be forced to suffer losses, we hope that more stores will adopt Bitcoin as a payment method,” the announcement said.

The move comes after the Japanese government officially recognized Bitcoin as a legal form of payment, a policy shift that also formed the regulatory framework for digital currency exchanges in the country.