New York based cryptocurrency exchange Gemini operated by the Winklevoss twins announced today that it had completed its SOC 2 – SOC for Service Organizations Type 1 examination by the Big Four auditor firm Deloitte & Touche LLP.
The exchange has now become the world’s first crypto exchange and custodian to have passed this examination.
Gemini’s Focus on Compliance
Gemini’s head of risk, Yusuf Hussain made the announcement on Gemini’s blog about the SOC 2 review.
“After months of preparation and an in-depth external review, we are pleased to announce that Gemini has successfully completed its SOC 2 Type 1 examination. This makes Gemini the world’s first cryptocurrency exchange and custodian to demonstrate this level of security compliance in protecting customer data and funds.”
He stated that providing users a secure platform to buy, sell and store digital currency is Gemini’s priority and helps fulfill their mission of building the future of money.
SOC 2 reviews are the industry standard in the traditional financial and technology sectors for demonstrating that the company is security compliant.
The Security First Mindset
Gemini already has a digital asset insurance offering which covers users assets held in Gemini hot wallets. This complements the exchange’s FDIC “pass-through” deposit insurance that users fiat funds are covered by.
Now the new SOC 2 review coupled with these existing insurances increases consumer protection and safeguards for Gemini’s users.
Hussain called this a part of the platform’s “security first” mindset and stated that Deloitte independently evaluated the design and implementation of the company’s security controls.
The company’s infrastructure, exchange application, customer database, and its institutional-grade crypto storage systems were all reviewed to meet the standards and trust services criteria laid out by the American Institute of Certified Public Accountants (AICPA).
Hussain also said that this is the standard of compliance that users should demand from their crypto exchanges as well as custodians.
This year, Gemini will also try to obtain the SOC 2 Type 2 review to provide additional assurance to customers about their security measures.