Understanding the Significance of SOC 2 Compliance Audits for Crypto Projects

In the wake of global incidents that have eroded trust in the crypto industry, some firms are striving to rebuild confidence by pursuing processes that ensure compliance with business standards, particularly in terms of secure and responsible handling of customer data.

Various companies have issued press releases announcing their successful completion of the service and organization controls (SOC) 2 type 2 audit, designed to validate the security and data management capabilities of their organizations.

Lister highlighted key elements that A-LIGN examines during the audit process, emphasizing the importance of policies and procedures that outline routine business operations. He explained, “At a very basic level, we are looking for policies and procedures that outline routine business procedures that guide the operation of the business.”

Additionally, auditors assess documentation demonstrating effective controls that ensure proper operation of these procedures, as well as the protection of the company’s systems and associated data. Lister emphasized that SOC 2 audits enable crypto companies to demonstrate trust and transparency to their customers, particularly in terms of safeguarding customer data and assets, which has been a significant concern following control issues at exchanges in the past year.

While the audit provides assurance, Lister clarified that it does not directly improve business systems. Instead, it offers comfort to users and interested parties by confirming the existence and effectiveness of controls. He stated, “The SOC certification does not improve business systems, but it gives comfort to users and interested parties that controls are in place and operating effectively.”

Several prominent crypto companies have already successfully completed the SOC 2 audit. For instance, on July 6, crypto lending firm Nexo announced that it had strengthened its data security by passing this process. Nexo views this achievement as a significant milestone that enhances user security within their platform.

In 2022, crypto exchange crypto.com also highlighted its successful completion of the SOC 2 type 2 audit, underscoring its commitment to meeting highly regulated standards.

These audits serve as a critical step for crypto projects aiming to regain trust and demonstrate their dedication to data security and customer protection. By obtaining SOC 2 compliance, these companies signal their commitment to maintaining robust controls and adhering to industry best practices, ultimately fostering trust among users and regulatory entities.

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