Cryptoworth expands as a SOC 2 Type 1 and Type 2 compliant blockchain solutions company.
As a leading solution provider for the web3 accounting & financial reporting platform, data security is and will continue to be of paramount importance.
What’s different about the SOC 2 Type 2 certification when compared to Type 1?
SOC 2 (Service Organization Control 2) is an auditing standard developed by the American Institute of Certified Public Accountants (AICPA) to assess the security, availability, processing integrity, confidentiality, and privacy of a service organization’s systems and data. SOC 2 reports provide assurance to customers and stakeholders about the effectiveness of an organization’s internal controls.
The main difference between SOC 2 Type 1 and Type 2 reports lies in the duration of the assessment period and the level of assurance provided:
- SOC 2 Type 1: This report evaluates the design and implementation of controls at a specific point in time. It assesses the suitability of the organization’s systems and controls to meet the predefined trust services criteria. The assessment period typically covers a specific date or range of dates.
- SOC 2 Type 2: This report not only examines the design and implementation of controls but also evaluates the operational effectiveness of those controls over a specified period, typically a minimum of six months. Unlike Type 1, Type 2 reports provide a historical view of the organization’s controls and their effectiveness. It demonstrates the consistency and sustainability of control implementation over time.
The key takeaway here is that SOC 2 Type 2 evaluates controls over a specified period, offering a more comprehensive assessment of effectiveness.
In recognition of an ever expanding regulatory environment for web3 companies, data security and compliance is becoming more scrutinized by auditors and regulators. With new upcoming FASB rules that will facilitate how auditors can verify the accuracy and integrity of crypto pricing data, web3 companies have a greater responsibility to entrust the reporting and accounting to established and recognized reporting tools like Cryptoworth.
As a testament to our data security standards, the following is guaranteed through the platform:
- End-to-end Data encryption
- Account data backups for recovery
- SOC 2 Type 2 FMV data option
- User 2FA
Cryptoworth’s continual commitment to data security.
At Cryptoworth, there is nothing more valuable than security surrounding client data on Crypto One. Our SOC 2 Type 2 audit is a milestone but by no means the limit of where our efforts standup on continuously improving data security and integrity. Our team will routinely build upon the security layers present to ensure the highest grade platform-trust.
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