We are delighted to announce that we have completed both __SOC 1 Type 2__ and __SOC 2 Type 2__ examinations, covering our exchange and Gemini Custody™ products. The exams were conducted by Deloitte & Touche LLP and make us the __world’s first cryptocurrency custodian *and* exchange__ to demonstrate this standard of financial operations and security compliance.

At Gemini, we aim to foster trust by demonstrating through action that as a company we follow through on the commitments we’ve made to upholding the highest levels of security and compliance for the benefit of our customers. We have done so by showing definitively through these independent third-party SOC evaluations that our operations and security compliance structures meet robust industry standards. We believe that these standards should be upheld by any cryptocurrency exchange and custodian.

In January 2019, we became the first crypto exchange and custodian in the world to complete a [SOC 2 Type 1](https://gemini.com/blog/gemini-completes-soc-2-review-a-worlds-first-for-a-cryptocurrency-exchange-and-custodian) examination, and followed that up with a [SOC 2 Type 2](https://www.gemini.com/blog/gemini-completes-soc-2-type-2-examination-another-first-in-crypto) examination in January 2020. Building on these milestones, we completed a [SOC 1 Type 1](https://www.gemini.com/blog/gemini-custody-and-exchange-completes-soc-1-type-1-examination) examination in April 2020 and recently completed our __SOC 1 Type 2__ examination in December 2020. 

The SOC 1 evaluates the design and implementation of our financial operations and reporting controls, while the SOC 2 evaluates the design and implementation of our security, availability, and confidentiality controls. The Type 1 examinations assessed those processes at a point in time while our Type 2 examinations test that our system controls across our exchange and custody product have been operating over the period covering 2020.

Gemini will continue to uphold the highest standards of security and operational compliance by undergoing __SOC 1 Type 2__ and __SOC 2 Type 2__ examinations on a yearly basis moving forward. 

Onward and Upward,

Yusuf Hussain  
Head of Risk

Gemini Completes SOC 1 Type 2 and SOC 2 Type 2 Examinations — Leading Crypto Industry

We are pleased to announce that we have completed a SOC 1 Type 1 examination, which covers the financial operations and customer reporting controls of our exchange and Gemini Custody™. This exam was conducted by Deloitte & Touche LLP and makes Gemini the __world’s first cryptocurrency custodian and exchange to demonstrate this high standard of financial operations compliance.__
  
A SOC 1 Type 1 examination provides independent validation of a company’s financial operations and its customer reporting controls designed to mitigate the risk of significant error, omission, or data loss. By completing a SOC 1 Type 1 examination, our customers can confidently conduct, and subsequently attest to, their business on the Gemini platform.

SOC 1 is an internationally recognized achievement in the traditional financial services industry and we are proud to bring this standard of excellence to the cryptocurrency space. While vital to both our exchange and custody platform, the SOC 1 Type 1 is particularly important to our exchange operations, which execute a significant volume of complex financial transactions for our customers. The SOC 1 Type 1 validates the design and implementation of those operations and the integrity of their corresponding reports.
 
Going forward, we will be completing a SOC 1 Type 2 examination on an annual basis. This will independently verify whether our financial operations and reporting controls are not only designed and implemented appropriately __at a point in time__, but also that they have been operating effectively __over a period of time__.

Security is one of our core values at Gemini, as previously demonstrated by our [SOC 2 Type 1](https://gemini.com/blog/gemini-completes-soc-2-review-a-worlds-first-for-a-cryptocurrency-exchange-and-custodian) and [SOC 2 Type 2](https://gemini.com/blog/gemini-completes-soc-2-type-2-examination-another-first-in-crypto) examinations. __Trust is our product__; and we look forward to earning and maintaining your trust. Our SOC 1 Type 1 is yet another proof point that Gemini continues to strive towards achieving the highest standards of financial operations compliance for the benefit of you, our customer.

Onward and Upward,

Yusuf Hussain, Head of Risk


Gemini Custody and Exchange is world's first cryptocurrency custodian and exchange to attain this standard of financial operations compliance.

Gemini Custody and Exchange is First to Complete the SOC 1 Type 1 Examination

Gemini Custody and Exchange Completes SOC 1 Type 1 Examination — Another First in Crypto!

Gemini has completed its independent __SOC 2 Type 2__ examination, which covers the security compliance of our exchange and Gemini Custody™. This makes Gemini the __*world’s first crypto exchange and custodian to demonstrate the highest  level of security compliance in the industry*__.

In January 2019, we became the first crypto exchange and custodian in the world to complete a [SOC 2 Type 1](https://gemini.com/blog/gemini-completes-soc-2-review-a-worlds-first-for-a-cryptocurrency-exchange-and-custodian). While a SOC 2 Type 1 evaluates the design and implementation of system controls __*at a point in time*__, a SOC 2 Type 2 evaluates whether these system controls have been operating effectively __*over a period of time*__. Upon the completion of our Type 1, we publicly committed to following through with a Type 2 examination and — working again with Deloitte & Touche LLP — we’re proud to have achieved this!

At Gemini, __trust is our product__. Trust is built over time and it’s a function of doing what you say you are doing. Taking this further, simply saying you are secure is not the same as demonstrating you are secure to an independent third party. We feel that everyone should require these standards for any cryptocurrency exchange and custodian they use.

Going forward, we will be completing a SOC 2 Type 2 on an annual basis. We believe this kind of assurance, in addition to other safeguards we have implemented, such as digital asset insurance for our [hot wallet](https://gemini.com/blog/digital-assets-insurance) and [Gemini Custody™](https://gemini.com/blog/gemini-launches-captive-insurance-company-now-has-the-most-custody) helps protect our customers data and cryptocurrency and further our mission to __*empower the individual through crypto*__.

Onward and Upward,

Yusuf Hussain, Head of Risk





Gemini Completes SOC 2 Type 2 Examination — Another First in Crypto!

We are excited to announce that we have launched Nakamoto, Ltd. (Nakamoto), a captive insurance company licensed by the Bermuda Monetary Authority (BMA) to insure Gemini Custody™. Nakamoto — __*the world’s first captive to insure crypto custody*__ — allows us to increase our insurance capacity beyond the coverage currently available in the commercial insurance market. This insurance solution gives Gemini Custody™ __*$200 million*__ in insurance coverage — __*the largest limit of insurance coverage purchased by any crypto custodian in the world.*__ Our policy insures against the theft of digital assets from Gemini Custody that results from a direct security breach or hack of Gemini’s Custody systems, or theft by a Gemini employee.

Gemini customers can now also purchase additional insurance for their segregated crypto assets (for inquiries, please reach out to custody@gemini.com). In addition, we have [Hot Wallet](https://gemini.com/blog/digital-assets-insurance) insurance coverage for your crypto we hold in our online Hot Wallet. Lastly, U.S. dollar deposits held at Gemini are eligible for FDIC “pass through” [deposit insurance](https://gemini.com/user-agreement/#fdic-insurance).

Insurance is essential to the health and growth of modern financial markets and we’re proud to bring insurance to the crypto markets — a critical next step on our mission — __*to empower the individual through crypto.*__

Gemini Custody™ is regulated by the New York State Department of Financial Services (NYDFS) and is [SOC 2 Type 1](https://gemini.com/blog/gemini-completes-soc-2-review-a-worlds-first-for-a-cryptocurrency-exchange-and-custodian) compliant. For more information on Gemini Custody™ or our custody insurance solution please reach out to custody@gemini.com.

Onward and Upward,

Yusuf Hussain, Head of Risk

__Note:__ Our policy does not cover any losses resulting from any unauthorized access to your user account. You agree and understand that you are solely responsible (and you will not hold us responsible) for managing and maintaining the security of your user account login credentials and any other required forms of authentication, including your API keys. You further agree and understand that we are not responsible (and you will not hold us responsible) for any unauthorized access to or use of your user account and/or your Gemini account. Please refer to our User Agreement for further details. 

*Updated: April 11, 2022*

![Group 2020-01-13 CaptiveInsurance photo01](//images.ctfassets.net/jg6lo9a2ukvr/3UBqo04LiICJqCPfjFjqQS/897e3a6382ef897c8eb40a96fe6449ff/Group_2020-01-13_CaptiveInsurance_photo01.jpg)
*Hon. Curtis L. Dickinson, JP, MP, Minister of Finance; Sydney Schaub, Chief Legal Officer, formerly General Counsel, Gemini; Tyler Winklevoss, CEO, Gemini; Hon. E. David Burt, JP, MP, Premier of Bermuda;  Cameron Winklevoss, President, Gemini; Yusuf Hussain, Head of Risk, Gemini; Denis Pitcher, Chief Fintech Advisor to the Premier of Bermuda.*


Gemini Launches Captive Insurance Company - Now Has the Most Custody Insurance Coverage in the Crypto Market

Last August, Gemini announced its participation in the [Virtual Commodities Association (VCA).](https://www.gemini.com/blog/joining-the-virtual-commodity-association) We joined the VCA because in order to build the future of money, thoughtful regulation is necessary to create healthy markets.

The VCA’s goal is to establish itself as an industry-sponsored, self-regulatory organization (SRO) for the U.S. virtual currency industry, specifically virtual commodity marketplaces. This designation will allow the VCA to operate similarly to SROs in other industries, most notably the traditional financial industry, where the Financial Industry Regulatory Authority (FINRA) and National Futures Association (NFA) have self-regulatory authority over financial institutions.

One of the first steps in this process is to create a framework which will eventually form sensible regulation for virtual commodity marketplaces. To do so, the VCA has launched six key committees that will help set standards, sound practices, and oversight.

The VCA will also be governed by a [Board of Directors](https://virtualcommodities.org/#Governance). I have been appointed President of the Board and Hailey Lennon, Esq., Head of Legal and Regulatory Affairs at bitFlyer USA, Inc. has been appointed Secretary of the Board. Special Advisors, which will oversee all committees, are Ellen Zimiles and Alma Angotti (Navigant Consulting, Inc.) and Dana Syracuse (Perkins Coie, LLP).

Several regulatory agencies have called upon the cryptocurrency industry to provide better oversight and surveillance of cryptocurrency markets. Through these committees, which will be led by financial and crypto industry subject matter experts, the VCA will adopt best practices and standards commonplace in traditional financial markets for cryptocurrency exchanges and custodians.

The six committees and leads include:

**BSA/AML** — led by Michael Carter (Alvarez & Marsal) to apply Bank Secrecy Act BSA/Anti-Money Laundering (AML) and Know Your Customer (KYC) controls, including blockchain analytics, transaction monitoring and investigations.

**Custody and Security** — co-led by Adam Cohen (Redgrave LLP) and Nicole Becher with a focus on implementing and maintaining current best practices for cryptocurrency custody, which is based heavily on cryptographic principles.

**Enforcement** — led by Philip Moustakis (Seward & Kissel, LLP) to enforce the regulatory framework established by the VCA, keeping the VCA members accountable. This includes maintaining a system of marketplace conduct rules, implementing policies and procedures, and responding to and addressing customer concerns and complaints.

**Insurance** — co-led by Matthew Gaul (Mayer Brown, LLP) and Alexander Sand (Eversheds Sutherland US, LLP) to establish minimum, appropriate insurances and coverages for cryptocurrency exchanges and custodians.

**Market Integrity** — led by Michael Roe (Exiger), to facilitate cross-market information sharing, consolidated audit trails and cross-market surveillance to detect and deter manipulative and fraudulent activity.

**Tax **— leader announcement forthcoming, will focus on establishing tax framework and interpreting and establishing tax code law as it relates to cryptocurrency trading.

We still have a long way to go but I am happy with where we are headed. The VCA is grateful to the individuals and companies willing to commit their time towards these committees and advance the goals of the VCA in fostering consumer protection and market integrity for the virtual currency industry.

I’m personally grateful to work for a company that takes matters like security, regulation, and consumer protections so seriously. To learn more about the VCA, please visit: [https://virtualcommodities.org/](https://virtualcommodities.org/).

Onward and Upward,

Yusuf Hussain, Head of Risk

VCA Working Towards SRO Designation, Stands up Six Committees to Help Protect America’s Crypto Investors

In 2018, Gemini engaged with Big Four auditor Deloitte & Touche LLP (Deloitte) to execute a SOC 2® — SOC for Service Organizations Type 1 examination. After months of preparation and an in-depth external review, we are pleased to announce that Gemini has successfully completed its SOC 2 Type 1 examination. This makes Gemini the **_world’s first cryptocurrency exchange and custodian to demonstrate this level of security compliance in protecting customer data and funds._**

Providing you with a safe and secure platform to buy, sell, and store your cryptocurrency is paramount to our mission to **_build the future of money_**. In the traditional financial and technology industries, SOC 2 reviews have become an industry standard for demonstrating security compliance. Our SOC 2 review — coupled with our [digital asset insurance](https://www.gemini.com/blog/digital-assets-insurance) — is another step we’ve taken towards raising the bar for consumer protection, safeguards, and industry best practices.

Gemini’s exchange and custody platform was built with a “security-first” mentality from the start. Continuing that approach, Deloitte performed an independent evaluation of the design and implementation of Gemini’s security controls. These controls have been independently inspected to meet the trust services criteria set by the American Institute of Certified Public Accountants (AICPA). This included a review of Gemini’s exchange application, infrastructure, and underlying customer database, as well as its institutional-grade cryptocurrency storage system that custodies the private keys of Gemini’s online and offline wallets.

We feel strongly that this standard of compliance is what all retail and institutional consumers should expect of their cryptocurrency exchange and custodian. We know what’s at stake when you trade and store crypto. That is why, in addition to our SOC 2 Type 1 review, we are also committed to obtaining our SOC 2 Type 2 review in 2019. This additional level of assurance will further validate the effectiveness of our internal controls.

Going forward, we will perform a SOC 2 examination on an annual basis in order to demonstrate our ongoing commitment to safeguarding your data and cryptocurrency.

For questions, please reach out to [support@gemini.com](mailto:support@gemini.com).

Onward and Upward,

Yusuf Hussain, Head of Risk

Gemini Completes SOC 2 Review — A World’s First For a Cryptocurrency Exchange and Custodian

After a series of due diligence roadshows with industry-leading insurers, we are pleased to announce that we have secured insurance coverage for the digital assets that we hold on your behalf in our online hot wallet. This furthers our mission to **_build the future of money_** by bolstering our commitment to providing you with a safe and secure platform to buy, sell, and store your digital assets. This new coverage complements existing FDIC “pass through” deposit [insurance](https://gemini.com/legal/user-agreement#fdic-insurance) that your fiat funds (U.S. dollars) are eligible for.

Our policy insures against the theft of digital assets from our exchange’s hot wallet that results from a direct security breach or hack of Gemini’s systems or theft by a Gemini employee. Our digital assets insurance does not cover, among other things, theft of digital assets by a third party as a result of an account takeover, a hack of a third party’s systems, or a fraudulent transaction initiated by a user. To learn more about common scams, please visit [this blog post](https://www.gemini.com/blog/common-online-scams-and-how-to-avoid-them).

To date, insurers have been hesitant to insure the crypto industry due to a large number of high-profile hacks that have resulted in catastrophic losses over the years, and the poor security standards, internal controls, and policies and procedures that have unfortunately characterized much of our industry. As a result, many crypto exchanges and custodians have been either (i) unable to obtain insurance or (ii) shied away from it due to the high cost of premiums required by the few insurers willing to insure the industry.

However, we were able to successfully demonstrate to insurers that Gemini, a New York trust company, is indeed a safe and secure exchange and custodian where customers can buy, sell, and store digital assets in a regulated, secure, and compliant manner.

You can learn more about the steps we take to secure our hot wallet and your digital assets in our offline cold storage system [here](https://gemini.com/security/). Additionally, you can read our FAQ [here](https://gemini24.zendesk.com/hc/en-us/articles/205823016) and our User Agreement [here](https://gemini.com/legal/user-agreement#digital-asset-insurance).

Not only is this a tremendous win for Gemini customers but this is also a win for the broader crypto industry in furthering consumer protection.

Onward and upward,

Yusuf Hussain  
Head of Risk

__Note:__ Our policy does not cover any losses resulting from any unauthorized access to your user account. You agree and understand that you are solely responsible (and you will not hold us responsible) for managing and maintaining the security of your user account login credentials and any other required forms of authentication, including your API keys. You further agree and understand that we are not responsible (and you will not hold us responsible) for any unauthorized access to or use of your user account and/or your Gemini account. Please refer to our User Agreement for further details.

*Updated: April 11, 2022*

Yusuf Hussain

ARTICLES BY Yusuf Hussain

Gemini Completes SOC 1 Type 2 and SOC 2 Type 2 Examinations — Leading Crypto Industry

Gemini Custody and Exchange Completes SOC 1 Type 1 Examination — Another First in Crypto!

Gemini Completes SOC 2 Type 2 Examination — Another First in Crypto!

Gemini Launches Captive Insurance Company - Now Has the Most Custody Insurance Coverage in the Crypto Market

VCA Working Towards SRO Designation, Stands up Six Committees to Help Protect America’s Crypto Investors

Gemini Completes SOC 2 Review — A World’s First For a Cryptocurrency Exchange and Custodian

A simple, secure way to buy and sell cryptocurrency