US-based cryptocurrency exchange, Gemini, has just lived up to their name and principles once again by becoming the first cryptocurrency exchange to pass the stringent Service Organization Control level 2 (SOC-2) type 1 examination, which was conducted by world-famous auditor, Deloitte.
The New York-based exchange which began in 2014 under Bitcoin millionaire brothers, and Olympic athletes, the Winklevoss twins, has long sported (pun intended) security and trust as the crux and foundation behind its establishment. Gemini exchange advertisements and promotional materials have proudly broadcasted catchy maxims such as “Crypto need rules!’ and “Gemini: the regulated cryptocurrency exchange” ever since its operation began five years back.
The exchange is now showing their official mantra is more than just captivating bluffs, setting the pace for other cryptocurrency exchanges across the world as they look to have their Bitcoin ETF petition approved by SEC.
The United States Securities and Exchange pride itself has to be one of the most efficient regulators of securities across the world, and has unsurprisingly initiated feuds with different cryptocurrency exchanges and crypto startups in the country. The recent examination, however, might just prove to SEC that this no game, as the Winklevoss twins vows to always put their customers’ security interests first and foremost.
In the latter part of last year, Gemini hired one of the four biggest auditors in the world, Deloitte and Touche LLP to oversee a SOC-2 Type 1 examination. The SOC-2 Type 1 examination is taken by the most stringent of financial institutions and Gemini’s decision to have one performed on the company not only displays huge confidence in accountability but a willingness to put customers interest first.
While the SOC-1 examination deals with financial reporting controls, the SOC-2 examination, on the other hand, deals with non-financial reporting controls. The SOC-2 reviews the effectiveness of controls that have been solely integrated to reduce risks on security, processing integrity, confidentiality, availability and privacy of a system.
A Service Based on Trust
CEO, Cameron Winklevoss stressed that the new development is only an appropriate emphasis on the value of the principles held by Gemini. He wrote:
“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.”
The announcement made by the Head of Risk Department also highlighted Gemini as a trailblazer in the aspect of security and trust among other cryptocurrency exchanges all over the world. An excerpt announcement read:
“This makes Gemini the world’s first cryptocurrency exchange and custodian to demonstrate this level of security compliance in protecting customer data and funds.”