The crypto custody arm of major United States-based cryptocurrency exchange Coinbase, Coinbase Custody, obtained two new security evaluations.
According to a press release published on Feb. 12, Coinbase Custody was granted a Service Organization Control (SOC) 1 Type 2 and a SOC 2 Type 2 report by major accounting firm Grant Thornton.
In obtaining the reports, Coinbase Custody is able to prove to clients that they are compliant with a variety of security and reporting standards.
According to Grant Thornton’s website, SOC reports are meant to provide information on “the existence and strength of financial, operational and information security controls in an organization.” An SOC 1 report provides information on the internal controls relevant to a user organization’s financial reporting. In other words, “SOC 1 reports are intended to be auditor to auditor communications.”
SOC 2 reports, on the other hand, provide information on “security, availability, processing integrity, confidentiality and privacy.” Both SOC 1 and SOC 2 reports are divided into Type 1 and Type 2. A Type 1 report describes the design of the controls, while a Type 2 report also covers their effectiveness after a minimum testing period of six months.
Coinbase Custody also states that it will renew the reports in the future. The announcement follows late January reports that Coinbase has established an entity in Ireland to expand its crypto custody services to European institutions.
Other cryptocurrency services have also sought out SOC certificates. As reported in late January, U.S.-based crypto exchange and custodian Gemini has completed a SOC 2 Type 2 evaluation through global professional services firm Deloitte.