Is Cryptocurrency Entering Its Golden Years?

Bitcoin. Ethereum. Binance Coin. When it comes to digital assets, investors have a growing number of choices. In fact, at the end of May, there were 10,115 different types of cryptocurrencies available — a number that continues to increase daily. However, when it comes to volume, Bitcoin and Ethereum currently hold better than 60% of the market share.

Today, the credibility of cryptocurrency is growing and gaining trust. In fact, many experts believe it is coming into its prime, with more mainstream companies having either already begun to accept digital assets as a form of payment or planning to do so in the very near future.

However, cryptocurrency is not without its challenges. Along with rapid growth comes key issues of concern regarding volatility and lack of regulation — both of which can lead to associated compliance risks and trickle up to a company’s management or executive board of directors. Common risk exposures can involve issues such as a company’s ability to keep cryptocurrency holdings secure when storing assets or in the transfer of value, and in the buying, selling and investing of digital currencies.

Other exposures that could directly implicate a company’s management and executive board include hacking, acts of theft or fraud, network/system malfunctions, user errors (intentional or not), and suspected criminal activity.

Today, it is predicted that the overall crypto market capitalization will more than triple and hit the $5 billion mark by 2030, as transparency in global payment systems improve and more mainstream companies implement and adopt cryptocurrency capabilities. And, as with any emerging exposure, cryptocurrencies bring with them unique insurance needs. 

The fact is, in the event a company is faced with claims involving digital asset transactions, it’s not uncommon for its executives or directors and officers to be named in cryptocurrency litigation. Having a D&O liability insurance policy can help mitigate these risks. 

Today, the rise in the value of cryptocurrency is garnering increased interest and has great potential to generate profits for the right company. To learn more about how D&O insurance can help protect your business, contact the experts at Oakwood D&O. We have over 15 years of experience specializing in all aspects of management liability, with an ardent focus on directors and officers

Get in touch – email Eli Solomon, CEO, at or call (323) 686-7519.

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