Cryptocurrency exchange Gemini has announced it has passed an independent security compliance audit by Deloitte, in a development the company is hailing as a “world’s first for a cryptocurrency exchange and custodian.”
According to an announcement from the firm, Gemini passed the Systems and Organizational Controls (SOC) 2 Type 1 assessment, which lends further credibility to its pitch to institutional investors and partners.
The exchange, which was founded by the Winklevoss twins, Cameron and Tyler, becomes the first to have completed this degree of audit.
.@Gemini's product is TRUST. We have just added another layer of trust by becoming the world's FIRST crypto EXCHANGE and CUSTODIAN to complete a SOC 2 Review by Deloitte https://t.co/mJz8IwuiTz
— Cameron Winklevoss (@cameron) January 29, 2019
According to the American Institute of Certified Public Accountants, “SOC 2 examinations are specifically designed to address controls at a service organization relevant to the systems at the service organization used to process users’ data.”
Gemini has suggested the independent assessment demonstrates the firm meets the AICPA trust services criteria, which including “security, availability, processing integrity, confidentiality [and] privacy.”
In a post on Medium, Yusuf Hussain, head of risk at Gemini, said the review was another step Gemini had taken in demonstrating its commitment to industry best practices.
He stated, “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.”
“Providing you with a safe and secure platform to buy, sell, and store your cryptocurrency is paramount to our mission to build the future of money. In the traditional financial and technology industries, SOC 2 reviews have become an industry standard for demonstrating security compliance. Our SOC 2 review—coupled with our digital asset insurance—is another step we’ve taken towards raising the bar for consumer protection, safeguards, and industry best practices.”
The achievement positions Gemini as a front-runner in the sector, particularly around crypto custody services popular with large institutional investors.
The examination will occur on an annual basis, with the firm committed to seeking further types of accreditation to demonstrate its proactive approach to compliance.
The company was further audited by BPM in December, which revealed full dollar for dollar reserves backing its stablecoin, Gemini Dollar (GUSD).
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