Gemini now passes second-level security exam conducted by Deloitte

Cryptocurrency exchange and custodian Gemini has said it has passed a second-level security compliance test conducted by “Big Four” auditing firm Deloitte.

Announcing the news on Thursday, Cameron and Tyler Winklevoss-founded Gemini claimed to be the “world’s first” crypto exchange and custodian to have completed the System and Organization Controls (SOC) 2 Type 2 examination.

However, crypto custodian BitGo passed the Type 2 examination in April 2019, after completing the Type 1 in July 2018.

"We are the first exchange AND custodian to receive our SOC 2 Type 2. The review by Deloitte covered both our exchange and custody services," a Gemini spokesperson told The Block. 

“SOC 2 examinations are specifically designed to address controls at a service organization relevant to the systems at the service organization used to process users’ data,” according to the American Institute of Certified Public Accountants (AICPA).

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Gemini worked with Deloitte for both - the SOC 2 Type 2 and the SOC 2 Type 1 examinations. The firm passed the Type 1 examination in January 2019.

“While a SOC 2 Type 1 evaluates the design and implementation of system controls at a point in time, a SOC 2 Type 2 evaluates whether these system controls have been operating effectively over a period of time,” explained Yusuf Hussain, head of risk at Gemini.

Looking ahead, Gemini said it will complete a SOC 2 Type 2 examination on an annual basis.

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Yogita Khatri is a senior reporter at The Block, covering all things crypto. As one of the earliest team members, Yogita has played a pivotal role in breaking numerous stories, exclusives and scoops. With nearly 3,000 articles under her belt, Yogita holds the records as The Block's most-published and most-read author of all time. Prior to joining The Block, Yogita worked at crypto publication CoinDesk and The Economic Times, where she wrote on personal finance. To contact her, email: [email protected]. For her latest work, follow her on X @Yogita_Khatri5.