Here’s What the SOC 2 Compliance Audit Means for Crypto Projects

While a series of global events have severely damaged confidence in the crypto sector, some still hope to regain this confidence by going through processes that ensure compliance with certain business standards, such as the proper handling of customer data. We do.

Many companies have published press releases to announce their compliance with the Service and Organization Controls (SOC) 2 Type 2 audit, which was created to certify their firms’ security and data-handling skills.

To learn more about what this type of security audit means for the industry, Cointelegraph reached out to Eric Lister, director of service delivery at audit firm A-LIGN.

In a statement, Lister highlighted some of the elements A-LIGN is looking for during this audit, what it means for the crypto space, and how it helps crypto companies perform better. According to Lister: “At a very basic level, we are looking for policies and procedures that outline the routine business processes that guide business operations.”

In addition, auditors look for documents that show controls that ensure processes are running effectively, as well as the security of the firm’s systems and its associated data. They said:

“Crypto has been facing a challenge over the past 12 months with reports of control issues on exchanges. The SOC 2 audit allows crypto companies to demonstrate trust and transparency with customers, especially when it comes to the security of customer data and assets.

Lister said a successful SOC 2 audit will show data and system security. In addition, the executive said that it will also certify the security of customer funds, which is of paramount concern to customers and government agencies.

Connected: BitGo Completes SOC 2 Compliance Certification Year After Deloitte Award

While the audit provides assurance, Lister clarified that it does not improve business systems. “SOC certification does not improve business systems, but it provides comfort to users and interested parties that controls are in place and working effectively,” he explained.

Many major crypto companies have already passed this audit process. On July 6, crypto lending firm Nexo said it had strengthened its data security by passing this process. According to Nexo, this event is a new milestone in enhancing user security within their platform.

️ Nexo is now SOC 2 Type 2 compliant, as audited @alignmentcompliance,

Independent investigations certify the alignment of our processes with the most stringent data privacy and security standards worldwide.

Advancing our commitment to your peace of mind.https://t.co/HC82oXFSNB

– Nexo (@Nexo) 6 July 2023

Crypto exchange crypto.com also in 2022 announced That it has passed the SOC 2 Type 2 audit. At the time, the firm highlighted that passing the audit proved its commitment to meeting high regulated standards.

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