In the wake of a series of detrimental global incidents that have shaken confidence in the realm of cryptocurrency, a glimmer of hope emerges as some industry players seek to restore trust. Their strategy involves undergoing meticulous processes that guarantee compliance with rigorous business standards, particularly in the realm of customer data management.
To this end, various firms have issued press releases proudly announcing their successful completion of the service and organization controls (SOC) 2 type 2 audit. Designed to assess the security and data handling capabilities of these organizations, this audit serves as a testament to their unwavering commitment to maintaining the highest standards.
In order to delve deeper into the implications of this type of security audit for the crypto industry, Cointelegraph has reached out to Eric Lister, the esteemed Director of Service Delivery at A-LIGN, an audit firm renowned for its expertise in the field.
Lister has shed light on the specific criteria that A-LIGN scrutinizes during the audit, expounding upon its profound implications for the crypto sphere and its potential to propel crypto companies toward greater achievements. According to Lister, “Fundamentally, our focus lies in scrutinizing the policies and procedures that outline the routine business operations guiding the organization.”
Moreover, auditors diligently seek to identify documented controls that ensure the efficacy of these procedures, as well as the safeguarding of the organization’s systems and the associated data. Lister elucidated on this matter, stating, “Crypto has been confronted with control-related challenges at various exchanges over the past twelve months. By undergoing SOC 2 audits, crypto companies can foster trust and transparency with their customers, particularly in terms of protecting invaluable customer data and assets.”
Lister emphasized that a successful SOC 2 audit serves as a validation of robust data and system security. Furthermore, he highlighted its vital role in guaranteeing the security of customer funds, which remains a paramount concern for both customers and government agencies.
It is important to note, however, that while the audit provides much-needed assurances, Lister clarified that it does not directly improve business systems. He clarified, “The SOC certification itself does not enhance business systems; instead, it provides reassurance to users and stakeholders that robust controls are in place and effectively operational.”
Notably, several prominent crypto companies have already triumphed in this rigorous audit process. On July 6, crypto lending firm Nexo proudly announced its successful completion of the SOC 2 audit, reinforcing its dedication to fortifying data security and augmenting user protection within its platform.
️ Nexo is now SOC 2 Type 2 compliant, as audited by @aligncompliance.
The independent examination attests to our processes’ alignment with the most rigorous data privacy and protection standards worldwide.
Advancing our commitment to your peace of mind.https://t.co/HC82oXFSNB
— Nexo (@Nexo) July 6, 2023
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Similarly, in 2022, crypto exchange crypto.com made headlines when it accomplished the SOC 2 type 2 audit. At the time, the firm emphasized that this achievement serves as a testament to its unwavering commitment to meeting and surpassing highly regulated standards.
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The ongoing adoption of SOC 2 compliance audits within the crypto industry showcases a resolute effort to restore trust, fortify security, and ensure the safeguarding of customer data and assets. By adhering to these stringent standards, crypto companies aspire to foster transparency, reliability, and accountability in an ever-evolving digital landscape.
As the crypto industry continues to evolve, it becomes increasingly imperative for organizations to embrace and excel in such audits, setting new benchmarks for security and reinforcing the foundation of trust that underpins this rapidly expanding field.
