Binance, the world’s largest crypto exchange by volume, has completed the SOC 2 Type II audit, a rigorous assessment of its systems protection and data security by a third-party validator.
The SOC 2 Type II audit comprehensively evaluates an organization’s controls and practices in two key areas: systems protection and data security. The audit is conducted by an independent third-party validator, which in Binance’s case was A-LIGN, a leading cybersecurity and compliance firm. It covers various aspects of the organization’s operations, such as policies, procedures, processes, systems, and personnel.
The SOC 2 audit also verifies that the organization’s controls and practices are consistent and effective over a period of time, usually 12 months.
Binance’s announcement marks a significant achievement for the exchange and the crypto industry. The crypto exchange said it aims to maintain robust security protocols across its platform and continuously upgrades its systems.
Key measures include stringent access management, advanced encryption techniques, and a resilient incident response protocol.
Binance’s Chief Security Officer, Jimmy Su, said that the exchange decided to undergo the audit to demonstrate that crypto platforms can meet, and even shift, the strict standards that apply in traditional regulated industries. He said that the crypto industry still faces a gap in the understanding and perception of its security and credibility and that collective efforts from industry players are required to affect change.
Jimmy added that the SOC 2 Type II audit is the latest example of Binance’s commitment to enhancing its security and reputation.
According to Binance’s new CEO, Richard Teng, the SOC 2 Type II audit reaffirms “well-designed and appropriately implemented controls” for the exchange.
Teng, who was named the new CEO of Binance after Changpeng Zhao (CZ) stepped down, expressed his confidence in Binance’s future and said that the exchange will continue to be the world’s largest crypto exchange by volume. He said that the fundamentals of Binance’s business are very strong and that the exchange has a debt-free capital structure, modest expenses, and robust revenues and profits.
The new CEO also highlighted that the audit will help Binance gain more trust and recognition from its users, partners, regulators, and the broader crypto community. He said that Binance will continue to pursue its vision of increasing the freedom of money and empowering its users with more choices and opportunities.
