BIG PICTURE

Could insurance save crypto firms from cliff-edge?

Washington DC

Reflections in the front facade of the Securities and Exchange Commission (SEC) building. The co-founders of crypto insurance company Evertas have suggested that mandating insurance for Web3 businesses would be more effective at reducing the number of insolvency events –and minimising damage to consumers when they occur – than tighter regulation. Some crypto holders lost thousands of dollars when the crypto exchange FTX collapsed at the end of last year. Its founder, Sam Bankman-Fried, was arrested on suspicion of eight different charges, including fraud and money laundering, before being released on bond in December.