Bitcoin exchanges to offer cover

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. Coincheck, another domestic bitcoin exchange, is pursuing a similar product release in conjunction with Tokio Marine and Nichido Fire Insurance.

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 move comes months after Japan’s government recognised bitcoin as a kind of legal payment method, a policy shift that also formed an oversight framework for digital currency exchanges in the country, said a report in the Coin Desk website.