Relm Insurance has received a Class IIGB (Innovative Insurer General Business) license from the Bermuda Monetary Authority, which allows the insurer to indemnify Bitcoin miners in the same currency they mine.
“We are offering a new insurance product that is specifically designed for Bitcoin miners. The BTC BI insurance policy is the first product in the industry that is denominated in Bitcoin and offers business interruption coverage,” Relm Insurance said.
Traditional forms of equipment insurance used in the mining industry are based on a potential three-year profit from Bitcoin. However, the insured loss can only be paid in fiat currency. This can result in the cost of coverage being dependent on the exchange rate between Bitcoin and fiat currency.
In a letter to mining companies, the Relm Insurance administration reports that the launch of BTC BI insurance will allow crypto industry participants to focus more on developing the technological base and reduce the risks associated with mining the flagship cryptocurrency.
The US Federal Trade Commission (FTC) has repeatedly drawn the attention of investors to the fact that cryptocurrency deposits are not insured by the US Federal Deposit Insurance Corporation (FDIC), and their holders will not be able to count on the return of lost funds under government protection programs.
