A major accounting firm, Grant Thornton, on February 12, 2020, published a press release stating that the crypto custody arm of the major United States-based cryptocurrency exchange, Coinbase has been granted two new security evaluation i.e., Security Organization Control (SOC) 1 Type 2 and a SOC 2 Type 2. Coinbase is the first that has attained both of the prestigious security credentials.
In reports, it was mentioned that Coinbase Custody has a variety of security and reporting standards, which it (Coinbase Custody) was able to prove to its clients. The report added that Grant Thornton and LLP were the partners of Coinbase in this project.
SOCs divided into two
The Grant Thornton mentioned on its website, “SOC reports are meant to provide information on the existence and strength of financial, operational and information security controls in an organization.” It further stated that SOC1 reports would provide the information relevant to a user financial reporting organization, on internal controls. And SOC 2 would provide information regarding security, availability, processing integrity, confidentiality and privacy.
The Coinbase custody has divided both the SOCs into Type 1 and Type 2. Type 1 report of the SOC explains the design of the control and Type 2 explains its effectiveness after a minimum testing period of six months.
Reports Will Be Renewed
The Coinbase Custody has mentioned that in the future it would renew all its reports. It also announced that Coinbase would soon be establishing its entity in Ireland in order to expand its crypto custody services to European institutions.
According to the reports, presently many other cryptocurrency services have sought out SOC certificates. Earlier, the global professional services firm Deloitte did a SOC 2 Type 2 evaluation of the US-based crypto exchange and custodian, Gemini.