News • Business News • Insurance
Two bitcoin exchanges in Japan are launching insurance products aimed at preventing losses tied to failed transactions.
According to a report from Nikkei, bitFlyer is working with Mitsui Suitomo Insurance, a subsidiary of MS&AD Insurance Holdings Group, which offers non-life insurance products. That product is said to be going live today.
Coincheck, another domestic bitcoin exchange, is pursuing a similar product release in conjunction with Tokio Marine and Nichido Fire Insurance.
While the exact policy details aren’t immediately available, the products are said to be aimed at shoring up confidence in digital currency transactions. In the case of bitFlyer, the policy would cover losses for retailers that accept bitcoin in the event that a customer transaction doesn’t go through due to technical problems.
“The hope is that more stores will adopt bitcoin as a payment method if they are not forced to simply eat such losses,” the publication wrote.
The move comes months after Japan’s government recognized bitcoin as a kind of legal payment method, a policy shift that also formed an oversight framework for digital currency exchanges in the country.
Disclosure: CoinDesk is a subsidiary of Digital Currency Group, which has an ownership stake in bitFlyer.