On Feb. 12, the major accounting organization, Grant Thornton, published that Coinbase Custody was awarded with a SOC 1 (Service Organization Control) Type 2, and a SOC 2 Type 2.
By getting the reports, Coinbase Custody can explain to customers that they are supporting a diversity of security and reporting measures.
As indicated by Grant Thornton’s site, Service Organization Control reports are intended to present information on “the operational and data security controls, the presence and strength of financial in a firm.” A SOC 1 report gives data on the inside controls relevant to a client organization’s financial writing.
On the other side, SOC 2 reports give information on “accessibility, security, processing integrity, and confidentiality.” Both SOC 1 and SOC 2 reports are partitioned into Type 1 and Type 2. A Type 1 report explains the plan of the controls, whereas a Type 2 report additionally covers their viability after a base testing time of a half year.
Coinbase Custody additionally expresses that it will reestablish the reports later on. The announcement follows late January reports that Coinbase has set up an office in Ireland to extend its crypto custody facilities to European institutions.
Use of Crypto Custody
The biggest benefit of crypto is the ability to freely custody them; institutional investors and financial markets require an elevated security standard that can barely be accomplished with self-custody.
The developing cryptocurrency market is also looking to adopt traditional institutions. After implementing new Anti-Money Laundering laws, 40 German banks asked that regulators move forward to allow banks to offer digital asset custody services.