Bitbuy has entered into a partnership with Knox, an institutional Bitcoin custody provider with a comprehensive insurance policy.
The partnership, which allows Bitbuy users to store their bitcoin holdings in an offline vault with insurance up to the full value of the holdings, marks a significant development for the cryptocurrency industry in Canada and abroad.
Bitbuy has moved its existing bitcoin holdings over to Knox, who will securely store these assets in a segregated and insured custody account.
This enhanced level of customer protection constitutes Bitbuy’s industry leading push for best practices while the cryptocurrency industry in Canada awaits greater regulatory clarity.
The Knox insurance policy covers the risk of bitcoin theft and loss, including internal theft such as collusion, up to the full value of the holdings held in cold storage subject to the full policy terms, conditions and exclusions.
Knox’s insurance broker Marsh Canada Limited, will provide an insurance certificate in Bitbuy’s name to validate the coverage. Bitbuy customers will not see any increase in their fees as a result of this security enhancement nor will any action be required to take advantage of this service.
Bitbuy will be Knox’s first platform partner to be able to provide its customers with this insured Bitcoin wallet offering.
Q: Do I need to do anything to activate this on my Bitbuy account?
A: No, you will notice nothing different on your Bitbuy account. Your Bitcoin balance which was previously kept in our previous cold storage arrangement has been moved to Knox custody.
Q: Does this apply to all coins offered on Bitbuy?
A: At this time, only Bitcoin holdings are insured through Knox’s insurance. There are tentative plans in place for equal coverage on additional assets but there is no timetable set.
Q: Will there be additional fees?
A: No, there will be no additional fees paid by users for this added service. All incremental costs will be absorbed by Bitbuy.
Q: Will this affect my ability to withdraw Bitcoin from my Bitbuy account in any way?
A: No, Bitcoin withdrawals will still be processed the exact same way. Your Bitcoin will be available to be withdrawn at any time.
Q: Who is Knox?
A: Based in Montreal, Knox is a Bitcoin custody provider focused on insured key storage, allowing service providers, investors and fiduciaries to mitigate the downside risk of theft and loss. Knox is on a mission to facilitate an ethical financialization of Bitcoin, with financial services focused on risk management. Institutional investors include Initialized, iNovia and Fidelity Investments Canada ULC (certain funds).
Q: How does this differ from other insurance coverage available on other platforms?
A: The insurance coverage available through Knox covers the entirety of our holdings in the segregated custody account. This means, in any event resulting in theft or loss of bitcoin, customers will be insured up to the full-amount of their holdings, and not subjected to any pro-rata distributions of an umbrella policy pay-out.
Q: Are hot and cold wallets both covered?
A: Only the assets custodied by Knox are covered 1:1. However, all of the customer bitcoin funds that are in Bitbuy customer accounts are delivered to Knox cold storage. This means all customers Bitcoin funds are covered by this policy at this time.
Q: Is there a maximum to the coverage?
A: No there is no maximum to the coverage of Knox’s custodian bitcoin accounts by Marsh
Q: Who should I reach out to if I have additional questions on this?
A: Please reach out to our support team who will have all your answers. Email us at [email protected]
IMPORTANT NOTE ON COVERAGE: Under the relationship established between Bitbuy and Knox, Knox maintains an insurance policy designed to respond to a limited set of named perils that may occur in the context of Knox key management activities. This insurance policy does not cover any actions, errors or omissions made by Bitbuy customers in accessing, or attempting to access, their accounts. This includes, but is not limited to, losses arising from customers divulging their credentials in a successful phishing attack, successful SIM swapping attacks, acts of social engineering, threats or extortion against Bitbuy’s customers or Bitbuy’s customers’ friends and or family, or any other such occurrences. Bitbuy encourages customers to learn best security practices, including methods by which they can protect anuthorized access to their account.
Articles like this one in your inbox every week.