Getting covered by insurers is a major issue for crypto players “despite their best efforts,” Big Four auditor PwC has said.
Cryptocurrency businesses find it “almost impossible” to get insurance and this is deterring investors, Big Four auditor PricewaterhouseCoopers (PwC) told Reuters Dec. 20.
In comments focusing on the global fintech market, Henri Arslanian — the firm’s fintech and crypto leader for Asia — highlighted the contradictory status quo industry businesses face trying to attract funding.
“Most institutionally-minded crypto firms want to buy proper insurance, and in many cases, getting adequate insurance coverage is a regulatory or legal requirement,” he told the publication, continuing:
“However, getting such coverage is almost impossible, despite their best efforts.”
The paradox is made more painful by investors’ persisting high levels of interest in getting into the space, Reuters adds, quoting a September survey that placed such interest at 72 percent among institutional investors.
Following a year of heavy losses for participants and issuers of initial coin offerings (ICOs) in particular, investment and long-term prospects of crypto operators has come under the spotlight once more.
Mining giant Bitmain — whose reported plans to conduct an initial public offering (IPO) in Hong Kong were revealed in June — has faced multiple reports of misgivings on the part of both local regulators and prospective host, the Hong Kong Stock Exchange (HKEX).
At the same time, those involved in funding crypto businesses, such as cryptocurrency merchant bank Galaxy Digital, maintain that the entry of institutional investors is both guaranteed and a major step to legitimizing the market.