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The longtime head of the UFW is stepping down. His replacement will be the first woman to lead the unionAugust 29, 2018 | dailybusinessnews
Longtime United Farm Workers President Arturo Rodriguez will step down from leadership of the union founded by his father-in-law, Cesar Chavez, the union confirmed Tuesday.
His replacement, Teresa Romero, will be the first woman and first immigrant to lead the labor organization.
Romero, 60, the…
A growing number of big-name insurers are getting into the crypto space. They are exploring new product options in this area and meeting with cryptocurrency custodians and trading platforms about coverage. However, exclusions can add up fast for crypto businesses and premiums can be more than five times that of a normal business.
Large Insurers Getting into Crypto
While most big-name insurers are reluctant to provide coverage to crypto startups, some are slowly coming around and quietly entering the space. Two leading insurance brokers that help companies shop for crypto policies, Marsh & Mclennan and Aon, were quoted by Bloomberg on Thursday:
Business has been brisk this year.
Marsh has formed a dedicated team to service blockchain startups while Aon says it has “seen some insurers tweak general company policies to include crypto-specific protections,” the publication detailed, adding that Aon also claims to have over 50 percent of the crypto insurance market.
According to the company’s website, “Aon has been working to understand these evolving technologies and actively collaborates with the insurance marketplace to develop innovative risk transfer solutions.” Its subsidiary, Aon Risk Solutions, has “developed a policy form to protect against the loss of cryptocurrency along with other initiatives designed to meet the emerging risks posed by cryptocurrencies and digital ledger technologies,” Business Insurance magazine described.
European insurer and asset manager, Allianz SE, has 88 million retail and corporate clients in more than 70 countries. The Munich-based company “began offering individual coverage for digital-coin theft in the past year,” the publication conveyed and quoted the company’s spokesman, Christian Weishuber, saying:
Insurance for cryptocurrency storage will be a big opportunity…Digital assets are becoming more relevant, important and prevalent on the real economy and we are exploring product and coverage options in this area.
American International Group (AIG) “has also been adding crypto coverage into standard policy forms” and has “met with cryptocurrency custodians and trading platforms about coverage,” the news outlet detailed and quoted a source familiar with the matter:
Over a dozen underwriters, including Chubb and XL, currently provide coverage to crypto-related businesses.
In February, Reuters reported that XL Catlin, Chubb, and Mitsui Sumitomo Insurance firms started offering protection against crypto theft.
Crypto companies are also increasingly seeking to obtain insurance coverage to help attract more clients. A London-based startup focused on crypto custody services, Trustology, is one of the businesses in talks to obtain coverage, according to Bloomberg. The company wants to insure its customer accounts for up to £85,000 (~US$ 111,630), which is the same standard as a U.K. bank account.
However, insurance premiums for crypto-related coverage are costly and policies can take months to get approved, the publication conveyed, adding that “exclusions can add up fast.” For example, while losses from an interruption of service may be covered, the theft of cryptocurrency that caused the interruption may not.
Citing that many startups cannot afford to pay the high premiums, the news outlet elaborated:
The premiums from insuring such risk can be substantial. By some accounts, underwriters can charge a crypto-related company upwards of five times or more than your average business for coverage against loss or theft.
Do you think soon all big-name insurers will soon get into crypto? Let us know in the comments section below.
Images courtesy of Shutterstock, Allianz, and Aon.
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South Korea’s top financial regulator recently told 23 other countries’ regulators that the kimchi premium has fizzled since the anonymous trading of cryptocurrencies was banned in the country. Now, the government is introducing a new guideline to prevent local crypto exchanges from buying cryptocurrencies at foreign exchanges.
Kimchi Premium Disappearing
Kim Yong-beom, the vice chairman of South Korea’s top financial regulator, the Financial Services Commission (FSC), attended a meeting of the Financial Stability Board (FSB) in Basel, Switzerland, earlier this week.
The FSB is an international body that monitors and makes recommendations about the global financial system. Its members are financial regulators and central bankers from 24 countries as well as the International Monetary Fund, the Bank of International Settlements, the World Bank, the European Central Bank, and the European Commission.
According to the FSC’s statement issued this week, Kim told other world regulators that “The so-called kimchi premium stood at 0.6 percent on June 19,” Yonhap described. In comparison, he noted that “On Jan. 7, a speculative rally in bitcoin in South Korea prompted investors to pay premiums of 46.7 percent compared with international prices.” The vice chairman was further quoted by the news outlet:
Currently, there are small price gaps in cryptocurrency between local and international markets.
At the time of this writing, the price of BTC on Bitfinex is $ 5,875 while its won price on Bithumb equates to $ 5,947.
Government Believes Real-Name System is Working
The South Korean government introduced the real-name system for cryptocurrency accounts at the end of January, effectively “banning the use of anonymous bank accounts in transactions to prevent virtual coins from being used for money laundering and other illegal activities,” the publication described. “The real-name trading system was also part of the government’s latest measures to curb speculative investment into virtual money.”
However, since its introduction, the system has often been criticised because only a few banks decided to offer to convert existing “virtual” crypto trading accounts to real-name ones. The conversion rate is low and the banks that do offer this service choose to only provide it to the country’s largest crypto exchanges: Bithumb, Upbit, Coinone, and Korbit. Other exchanges continue to use corporate accounts, which the regulators say are prone to money laundering.
Nonetheless, the FSC said:
The frenzied buying of bitcoin and other cryptocurrencies seen in January this year in South Korea has been fizzling since the government banned anonymous trading of cryptocurrencies.
Stepping Up Monitoring
At a recent P2P loan review meeting with the Ministry of Justice and the National Police Agency, Kim pointed out that the real-name system “applied only to exchanges that receive virtual accounts at banks,” Hankook Ilbo reported. He added that the majority of crypto exchanges are still using corporate accounts.
Then the FSC said Wednesday that “it will step up monitoring of money transfers between local and foreign cryptocurrency exchanges,” the Korea Times reported, adding:
The new guideline, which aims to prevent local cryptocurrency exchanges buying virtual coins at foreign exchanges to launder money, will come into force on July 10 for one year.
The financial regulator revealed that it plans “to closely keep tabs on bank accounts used by cryptocurrency exchanges for parking their expenses.”
What do you think of the Korean government’s strategies? Let us know in the comments section below.
Images courtesy of Shutterstock, Yonhap, and the Korean government.
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The post South Korea Thinks Real-Name System is Working – Stepping Up Crypto Monitoring appeared first on Bitcoin News.
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