The SOC 1 Type 1 qualification is an important designation for the trading platform
One of the aspects that defines the best cryptocurrency wallets and exchanges is the level of security they offer, so receiving a security qualification is important for the image of the cryptocurrency world. The Winklevoss brothers’ Gemini cryptocurrency custodian and exchange platform just got the SOC 1 Type 1 security qualification. According to the company’s head of risk, Yusuf Hussain, this is the first time in history that a digital currency exchange has been granted a Service Organization Control (SOC) 1 Type 1 certification, which was approved by Big Four accounting firm, Deloitte.
This new certification is based on the compliance of Gemini’s financial operations with the requirements set by the American Institute of Certified Public Accountants. It basically means that as a result of the examination, Gemini is capable of responding and mitigating the risk of omitting data, reporting an error in it, or losing it. Hussain said, “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.” The SOC 1 Type 1 validates the design and implementation of those operations and the integrity of their corresponding reports. Gemini completed a SOC 2 security review back in January last year.
There are other cryptocurrency companies that are also undergoing these kinds of reviews, more recently Coinbase Custody, one big arm of the biggest exchange in the US. It procured a SOC 1 Type 2 and a SOC 2 Type 2 report by a major accounting firm. Also, BitGo, a blockchain security firm, gained a SOC 2 Type 1 certification from Deloitte in 2018.