Crypto exchange Gemini has announced that it has completed its SOC 2 Type 1 examination, and plans to obtain more security credentials by the end of the year. SOC 2 reports are essentially certifications testifying to the processing integrity, security, and/or availability of a service, with a key focus on data confidentiality for end users.
The exchange owned by billionaire crypto investment duo Cameron and Tyler Winklevoss is the first to have this level of security compliance on the cryptocurrency scene. In an announcement by Head of Risk, Yusuf Hussain, Gemini claims that the SOC 2 Type1 certification means that itis now the first crypto exchange in the world to demonstrate that level of security compliance in protecting user data and customer funds.
The SOC 2 Type 1 examination, which is considered an industry standard for demonstrating security compliance by financial and technological institutions, is a significant coup for Gemini as it seeks to promote itself as the non-risky alternative to the mainstream crypto exchange experience. The exam was carried out by Big 4 audit firm Deloitte & Touche LLP. According to Gemini, the full SOC 2 report is now available to users.
Gemini Breaks New Ground With Pro-Regulation Approach
Speaking further about Gemini’s plans Hussain said:
We feel strongly that this standard of compliance is what all retail and institutional consumers should expect of their cryptocurrency exchange and custodian. We know what’s at stake when you trade and store crypto. That is why, in addition to our SOC 2 Type 1 review, we are also committed to obtaining our SOC 2 Type 2 review in 2019. This additional level of assurance will further validate the effectiveness of our internal controls.
Gemini has said it built its exchange platform with consumer protection in mind as well as a ‘security first mindset’. The inspection carried out by Deloitte guarantees that the exchange system meets the high standard of the American Institute of Certified Public Accountants (AICPA) . The examination also involved a review of Gemini’s customer database and storage system which houses the keys to user wallets.
Without publicly advocating for users to store their crypto holdings in their exchange wallets like Binance’s Changpeng Zhao recently appeared to do, Gemini has always adopted a position portraying itself as the fully regulated and trustworthy cryptocurrency exchange solution, complete with a highly coveted New York BitLicense.
According to Hussain, after obtaining the Type 2 review later in the year, Gemini plans to make security evaluations a yearly event so as to demonstrate its commitment to protecting user assets and data.