Cryptocurrency has become a popular asset class for investors and businesses, but it comes with its own security challenges. To ensure digital asset safety, companies must adhere to the highest asset protection standards. One way to do this is by implementing the SOC-compliance framework. This blog post will discuss why SOC compliance is necessary for cryptocurrency custody and the benefits of partnering with SOC-compliant sub-custodians.

Challenges of Crypto Currency Security

Confidence is one of the biggest challenges in shifting cryptocurrencies into the mainstream. Companies must work hard to ensure investors feel secure when storing their digital assets. Cryptocurrencies are decentralized and do not offer the same protections as traditional currencies.

Companies must take extra steps to guarantee the safety and security of digital assets. If crypto systems worldwide standardize security techniques and methodologies, it will be simpler for end-users to make informed choices about which companies they want to work with and which products and services to use. A security standard like Cryptocurrency Security Standard (CCSS) or SOC 2 can provide this common, accepted framework.

What is SOC Compliance?

The Service Organization Control (SOC) compliance framework was developed by the American Institute of Certified Public Accountants (AICPA). It provides comprehensive security controls companies use to protect customers' data and assets. The framework covers physical security, access control, encryption, system monitoring, incident response, risk management, and more. Companies must demonstrate that they have implemented these controls to be certified as SOC-compliant.

Why is SOC Compliance Necessary for Cryptocurrency Custody?

Cryptocurrencies are on decentralized networks and aren’t backed by any government or central bank. Cryptocurrencies need extra security measures to avoid theft or loss. Using the SOC compliance framework helps companies establish dependable cryptocurrency storage systems.

To maintain security, digital custody organizations must take several precautions, such as utilizing robust encryption protocols, implementing secure access control systems, conducting regular system monitoring and audits, and implementing effective incident response plans. By adhering to these standards, companies can provide greater peace of mind for their clients when storing their cryptocurrencies safely and securely.

Benefits of Partnering With SOC-Compliant Sub-Custodians

Partnering with a sub-custodian certified as SOC-compliant can help reduce the risk for your company while assuring your clients that their assets are secure. A sub-custodian who meets the requirements outlined in the SOC framework will have strong security protocols to protect customer data and digital assets from unauthorized access or theft. They will also have an established process for responding quickly and effectively to any incidents or breaches that may occur.

By partnering with a sub-custodian who has achieved SOC compliance certification, you can rest assured knowing that your clients' cryptocurrencies are stored safely.

Etana Custody Maintains Cryptocurrency Security With Confidence

Maintaining high standards for asset protection is essential when it comes to crypto custody services. Adopting a comprehensive approach like the Service Organization Control compliance framework can help ensure your company's storage systems are secure while providing peace of mind for your clients when protecting their digital assets from theft or loss.