The Winklevoss Twins have been trying their hardest to take the crypto exchange world by storm by complying with every regulation that the US government put in place and going the extra mile by completing extra examinations and tasks. In their latest move, the crypto twins’ very own Gemini exchange completed the SOC 1 Type 1 examination, becoming the first crypto exchange and custodian in the world to achieve this standard.
For the average crypto trader, this will likely go miles over their heads, but if you really care about your crypto exchanges, security and safety of your crypto while it’s on an exchange, this is a huge leap for Gemini.
What is a SOC 1 Type 1?
For those of you that are still totally lost, the SOC 1 Type 1 is an exam that independently proves that a company’s financial operations and its customer reporting controls are designed in a way that mitigates data loss, error or omission. Simply put, this means that crypto traders and hodlers using any one of Gemini’s services know that their crypto and personal data is in safe hands, allowing them to sleep at night knowing their crypto and data isn’t going to go missing overnight.
Good News for Gemini, At Last
Gemini has had a rather bumpy year or so, with its Gemini USD stable coin (GUSD) suffering the brunt of the bumps. Back in September, the GUSD had just under $10 million in circulation, being one of the worst performing USD stablecoins at the time. Now, that figure has dropped to just under $6.5 million, a rather worrying sign for GUSD given that periods of high volatility sees crypto traders run for stablecoins to act as a form of safe haven and hedge against negative crypto price movements.
More Exams in the Pipeline
Not content with being the first and only crypto exchange and custodian to complete this SOC 1 Type 1 examination, Gemini is looking to begin completing the SOC 1 Type 2 examination on an annual basis. This will prove that Gemini’s financial operations and reporting controls work correctly over an extended period of time. This is a rather huge step, especially in an age where wash trading and fudged numbers in reported trade volume is rife.
Gemini continues to impress with its desire to adhere to as many rules and regulations as possible, going above and beyond the call of duty. Unfortunately, these regulations don’t appear to be wooing too many crypto traders as the Gemini exchange platform saw $28,454,120 in 24-hour trade volume at the time of writing. In comparison, Binance saw $5,479,319,777 in 24-hour trade volume during the same period.
