Cryptocurrency exchange and custodian Gemini has said it has passed a security compliance review conducted by âBig Fourâ auditing firm Deloitte.
Announcing the news on Tuesday, Cameron and Tyler Winklevoss-founded Gemini claimed to be the first crypto firm to have successfully completed the System and Organization Controls (SOC) 2 Type 1 examination.
âSOC 2 examinations are specifically designed to address controls at a service organization relevant to the systems at the service organization used to process usersâ data,â according to the American Institute of Certified Public Accountants (AICPA).
Gemini said Deloitte independently inspected and evaluated the design and implementation of its security controls to ensure it meets the trust services criteria set by the AICPA, which includes âsecurity, availability, processing integrity, confidentiality or privacyâ of the controls.
âThis included a review of Geminiâs exchange application, infrastructure, and underlying customer database, as well as its institutional-grade cryptocurrency storage system that custodies the private keys of Geminiâs online and offline wallets,â the firm added.
Gemini said it is also committed to clearing the SOC 2 Type 2 examination this year to âfurther validate the effectiveness of our internal controls,â and will take SOC 2 exams on an annual basis.
The difference between Type 1 and Type 2 examinations is that the former requires a report of a service organizationâs internal controls at a specific point in time, while the latter requires it over a period of time.
Last month, Gemini also published an attestation report from auditing firm BPM to validate that it held fiat currency to back its stablecoin, the Gemini Dollar (GUSD). The firm had about $91 million fiat reserves to back GUSD circulation as of Dec. 31, 2018.
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