Svitlana Volosovych, Doctor of Economics, Professor of the Finance, State University of Trade and Economics Department, Kyiv, Ukraine

ORCID ID: 0000-0003-3143-7582
e-mail: s.volosovych@knute.edu.ua

Іhor  Napadovskyi, Postgraduate student of the Department of Finance, State University of Trade and Economics, Kyiv, Ukraine

ORCID ID: 0009-0004-3927-2238
e-mail: I.Napadovskyy@knute.edu.ua

Risks of Cryptocurrency Assets and Possibilities of Their Insurance

Abstract. Introduction. Nowadays, consumers are increasingly interested in cryptocurrency assets for various financial transactions. These transactions are associated with certain risks. This requires the identification of ways to manage them.

Purpose. The purpose of the article is to identify and systematize the risks of the market of virtual assets, and identify the possibilities of their insurance.

The classification of risks of cryptocurrency assets was proposed according to such features as areas of occurrence, nature of losses received, subjects of the cryptocurrency asset market, types of cryptocurrency operations, composition of the object, composition of subjects of the cryptocurrency asset market, connection of the risk with other types of it, levels of financial losses when carrying out transactions with cryptocurrency assets, possibility of management. The components of operational risks in the market of cryptocurrency assets were proposed. The main risks for miners, investors, traders, owners of cryptocurrency wallets and participants in the infrastructure of the market of cryptocurrency assets were identified. It was found that the limiting factors for the development of cryptocurrency risk insurance are problems with the assessment of insurance risks, problems with the determination of the identity of the insured, the problem of the possible anonymity of the owners of crypto wallets.

Conclusions. The risk of cryptocurrency assets can be considered in a broad and narrow sense. In a broad sense, the risk of cryptocurrency assets is the probability of the occurrence of certain events, as a result of which there is a possibility of obtaining negative, zero or positive economic results. In a narrower sense, the risk of cryptocurrency assets is the probability of their total or partial loss under conditions of uncertainty. Operational risk has the most significant impact on the subjects of the cryptocurrency market. The possibility of insuring the risks of cryptocurrency asset market participants will help increase the safety of cryptocurrency transactions. At the same time, this will lead to the growth of trust in cryptocurrency.

Keywords: cryptocurrency assets; cryptocurrency asset risks; cryptocurrency risk insurance.

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