One of the largest insurance companies in the African continent, Old Mutual, which is part of the eponymous financial holding, refused to insure the equipment for the extraction of cryptocurrency because of the high risks and speculative nature of the industry, ItWeb reports.
The company conducted its own research, as well as appreciated customer reviews that have lost money on mining. This was the rationale for the decision to terminate the insurance of any business directly or indirectly associated with cryptocurrency.
Old Mutual also stressed that the risk analysis of such an immature and volatile industry is extremely difficult, especially given the lack of regulation and the use of digital currencies in money laundering and cybercrime.
The company's specialists added that the non-stop operation of expensive equipment creates risks of overheating and other faults that are difficult to calculate.
"The price of such equipment is usually greatly overestimated, and it is not possible to estimate its real value, since suppliers from the Far East [i.e. China] is extremely opaque , ”concluded Old Mutual expert Kristelle Coleman.
Recall that the Group-IB company has compiled a reliability rating of cryptocurrency exchanges in terms of insuring the funds stored on them.
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