It would be reasonable for individuals to purchase insurance against loss of bitcoins held by an exchange. The insurance would be much less expensive for exchan

It would be reasonable for individuals to purchase insurance against loss of bitcoins held by an exchange. The insurance would be much less expensive for exchanges who have agreed to an audit (and possibly other controls) by the insurance company. As a sidenote, the previous comment trumping up the FDIC is kind of misplaced. Government is needed for some things (like police), but not insurance.