Two exchanges of bitcoins in Japan are launching insurance products aimed at preventing losses linked to failed transactions.
According to a Nikkei report, bitFlyer is working with Mitsui Suitomo Insurance, a subsidiary of MS & AD Insurance Holdings Group, which offers non-life insurance products. It is said that this product will be in operation today.
Coincheck, another Bitcoin domestic exchange, is looking for a similar product launch together with Tokio Marine and Nichido Fire Insurance.
While the exact details of the policy are not immediately available, the products are said to reinforce confidence in digital currency transactions. In the case of bitFlyer, the policy would cover losses for retailers that accept Bitcoin in the event that a customer transaction is not made due to technical problems.
“The hope is that more stores will adopt Bitcoin as a payment method if they are not forced to simply eat those losses,” the publication wrote.
The decision comes months after the Japanese government recognized bitcoin as a kind of legal payment method, a policy change that also formed a supervisory framework for digital currency exchanges in the country.