bitFlyer, Japanese bitcoin exchange, announced its partnership with Mitsui Sumitomo Insurance to provide insurance for retailers for failed transactions that involves virtual currency.
The insurance package is first of its kind in Japan and is offered from the Tokyo cryptocurrency exchange and the MS&AD Insurance Holdings Group unit. It will cover the damages occurred for failed payment transactions due to system problems or other issues, Nikkei report stated.
“We jointly developed an insurance that compensates for the amortization. The virtual currency market including bitcoin has grown greatly, and the number of businesses is also increasing,” the release stated. (loosely translated). “On the other hand as a result of the expansion of the market, fraudulent acts by malicious users have also occurred, and the provider of settlement services bitFlyer has promoted efforts to protect users more securely.”
Some of the characteristics of liability insurance for businesses include compensation for legal fees and other dispute costs, compensation for damages liability related to settlement service as well as dispute costs, among others (loosely translated).
Also, another Tokyo virtual currency exchange operator, Coincheck has teamed up with Tokio Marine & Nichido Fire Insurance, and is gearing up to offer similar insurance product.
Japan has always been projected in the forefront of digital currency development in payment processes. It is widely used in varied businesses in Japan, such as electronics retailer Bic Camera, which has begun accepting bitcoin payments at some locations in the country.
