Old Mutual no longer insures crypto mining sector

Posted 12 June, 2019

Africa's leading insurance company – Old Mutual – has refused to provide insurance coverage for crypto mining facilities citing high risks and speculative industry.

After conducting an in-house investigation, the company determined that it should be more reasonable and safe to stop providing insurance for any activities and business connected with cryptos.

"Old Mutual is currently conducting a comprehensive risk analysis of all clients involved in computer-heavy business activities as well as third-party service providers such as software developers and Web designers to ensure they are not involved in crypto-currency mining,” says Christelle Colman 

Moreover, the company spokesperson commented that it is quite difficult to assess risks of the industry due to its immaturity, lack of regulation and illegal use of cryptos (money laundering, cybercrimes).

Other factors that guided this decision were risks of overheating and failures due to non-stop operations of expensive capacities, which complicates assessment.

The company expert noted that they could not estimate the real value of the facilities especially given usually too high prices for such equipment, citing extremely unclear suppliers from the Far East, in particular, China.

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