The Gemini cryptocurrency custodian and exchange earns a feather in its cap by obtaining security qualification SOC 1 Type 1.

The Winklevoss Brothers’ Gemini Custody and Exchange announced that it successfully completed the AICPA’s SOC 1 Type 1 examination, which covers the financial operations and customer reporting controls of the exchange and Gemini Custody.™ (COIN TELEGRAPH)

Gemini scores the distinction of becoming the world’s first cryptocurrency custodian and exchange to demonstrate such a high standard of financial operations compliance, according to Yusuf Hussain, Gemini’s Head of Risk.

The audit was conducted by Deloitte & Touche LLP.

Soc 1 Type 1

“A SOC 1 Type 1 examination provides independent validation of a company’s financial operations and its customer reporting controls designed to mitigate the risk of significant error, omission, or data loss,” writes Hussain. “By completing a SOC 1 Type 1 examination, our customers can confidently conduct, and subsequently attest to, their business on the Gemini platform.”

Gemini previously achieved SOC 2 Type 1 and SOC 2 Type 2 audits.

It intends in the future to annually complete a SOC 1 Type 2 examination. This rolling examination will ensure that Gemini’s security systems continue to function both at a certain point in time, and also over a period of time.

“While vital to both our exchange and custody platform, the SOC 1 Type 1 is particularly important to our exchange operations, which execute a significant volume of complex financial transactions for our customers,” wrote Gemini’s Hussain. “The SOC 1 Type 1 validates the design and implementation of those operations and the integrity of their corresponding reports.”

BitGo also obtained certification for security controls

According to CoinDesk, crypto custodian BitGo announced its completion of a SOC 2 Type 2 certification in April 2019.

BitGo chief security officer Tom Pageler said his company was the first crypto startup to reach that level.

An unnamed Big Four audit firm completed BitGo’s audit.

However, the scope of the certifications is different – the Gemini audit covers both its exchange and custody businesses, whereas BitGo’s covered custody only.

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