PolicyPal Network, a decentralized insurance protocol company providing insurance coverage to cryptocurrency organizations, has announced plans to form a strategic partnership with Sentinel Protocol. Sentinel Protocol, a crowdsourced threat intelligence platform built on blockchain technology, is making a proactive effort to address the critical need for increased crypto-asset security.
This partnership is incredibly exciting and very bullish news for the blockchain industry. Previously, insurers have not been willing to cover cryptocurrency exchanges due to high risks involved. “Cryptocurrencies are considered as risky products to traditional insurance companies”, said Val Yap, CEO & Founder of PolicyPal Network. “However, PolicyPal Network understands the importance of providing relevant cyber coverage to exchanges, smart contracts, and crypto wallets.”
Bithumb, the world’s 7th largest cryptocurrency exchange by trading volume, was hacked, resulting in more than 30 million USD in damages. The resulting damages, however, are unlikely to be compensated because Bithumb did not have the appropriate insurance policy. According to media publications, its coverage from both Hyundai “New Cyber Total Insurance” and Heungkuk “Personal Data Disclosure Liability Insurance” have a maximum limit of $5 million. However, neither policy provides any coverage for property damage, including hacking incidents.
This partnership intends to raise security standards and implement safety parameters in the blockchain industry, as well as safeguard exchanges from serious cybersecurity threats. Sentinel Protocol, by providing proactive security methods that help stop the usage of stolen cryptocurrencies, it has currently partnered with Bibox Exchange, marking the first partnership in the industry between a centralized exchange and blockchain security company. Sentinel Protocol and PolicyPal Network will be working closely to create preventive measures and security policies for their partners and users.
“Sentinel Protocol will be setting a realistic yet proper security protocol in this wild, wild west”, said Patrick Kim, CEO & Founder of Sentinel Protocol. “The blockchain industry has expanded abruptly without legitimate security measures. The framework we are building for both individuals and organizations should address the following concerns: what should be done to prevent hacks, what security policies organizations need to deploy, and what needs to be done after a hack. We hope that this framework becomes the industry standard.”
While PolicyPal Network’s CryptoProtect insurance is designed to protect digital assets and offer peace of mind to the cryptocurrency community, its Decentralised Insurance Protocol could provide added protection to Sentinel Protocol’s institutional participants such as exchanges, wallets, payment services and dApps. Sentinel Protocol will review PolicyPal Network’s insurance products to explore the possibility of providing such options to its current and future partners.
About Sentinel Protocol
Sentinel Protocol is a crowdsourced threat intelligence platform that protects cryptocurrency assets against hacks, scams, and fraud. The Sentinels, a group of incentivized security experts and cybersecurity organizations within the token economy, will track, detect, identify, and share threat and cybercrime data through the decentralized Threat Reputation Database.
About PolicyPal Network
PolicyPal Network aims to harness the advancements in the field of blockchain technology to bridge the gap between consumers and insurance providers by providing a new level of accessibility to the insurance ecosystem. The company is also a member of Singapore Fintech Association and ACCESS.
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