Cryptocurrency exchange and custodian Gemini said that they have passed a new security compliance review that was conducted by “Big Four” auditing firm Deloitte.
This was announced on Tuesday, and Cameron and Tyler Winklevoss, the founders of Gemini said that they were the first crypto firm that had successfully completed the System and Organization Controls (SOC) 2 Type 1 examination.
American Institute of Certified Public Accountants (AICPA) said– “SOC 2 examinations have been designed specifically to address controls at a service organization which is relevant to the systems at the service organization which is used to process users’ data.” Deloitte has independently inspected and evaluated the design and implementation of our security controls which has been ensured to meet the trust services criteria which have been set by the AICPA, and this includes “security, availability, processing integrity, confidentiality or privacy” of the controls. This also includes a review of Gemini’s exchange application, infrastructure, and their underlying customer database, along with its institutional-grade cryptocurrency storage system which is under the custody of the private keys of Gemini’s online and offline wallets. We are committed to clearing the SOC 2 Type 2 examination this year which will “further validate the effectiveness of our internal controls,” and we will soon take up the SOC 2 exams on an annual basis.
The difference between Type 1 and Type 2 examinations is that Type 2 requires a service organization’s report which has internal controls at a specific point in time, whereas the latter requires the service control over a period of time.
Last month, Gemini published an attestation report from auditing firm BPM which validated that they held fiat currency back to stable coin, the Gemini Dollar (GUSD). The firm had a whopping $91 million fiat reserves get back to GUSD circulation as of Dec. 31, 2018.