The Gemini crypto exchange has completed a new examination to ensure its security system controls operate effectively.
Gemini announced Thursday that it had completed an independent SOC 2 Type 2 examination conducted by consulting firm Deloitte, a year after it completed an SOC 2 Type 1 examination. Where the previous examination evaluated Gemini’s design and system control implementation, the Type 2 exam looks at operations across a period of time.
“We believe this kind of assurance, in addition to other safeguards we have implemented, such as digital asset insurance, helps protect our customers data and cryptocurrency,” said Yusuf Husain, head of risk at Gemini, in a statement.
The firm will be completing a SOC 2 Type 2 on an annual basis, Husain said.
The American Institute of Certified Public Accountants (AICPA) introduced the cybersecurity risk management examinations, named SOC for Cybersecurity, in April 2017.
The examinations are designed to help organizations meet the growing challenge of communicating the design and effectiveness of cybersecurity risk management programs to interested parties, according to a white paper from the AICPA.
“Simply saying you are secure is not the same as demonstrating you are secure to an independent third party,” Husain said. “We feel that everyone should require these standards for any cryptocurrency exchange and custodian they use.”
Gemini Exchange To Launch Sub-Accounts Feature For Institutional Investors
Gemini is a “a licensed digital asset exchange and custodian built for both individuals and institutions.” It is also “a New York trust company regulated by the New York State Department of Financial Services (NYSDFS).”
Sub-accounts allow institutions to segregate trading strategies, funds, end customers, and more across multiple sub-accounts under the same master account.
They also make it easier for institutions to earn volume-based trading fee discounts because volume for an institution is aggregated across all of its sub-accounts. The announcement stated:
“Each sub-account can have its own distinct set of users permissioned for specific roles, as well as its own account balance and unique, independently verifiable crypto addresses. A master account administrator can view and perform actions for any user of any sub-account.”
The addition of the feature would be beneficial to institutional customers, along with hedge funds that operate on multiple trading strategies, retail brokers who aim to support self-directed accounts for customers and Registered Investment Advisors [RIAs] seeking to run separate accounts.
The sub-accounts feature focuses on delivering four major specialties, namely, “account and user management, API functionality, instant fund transfers between sub-accounts, and aggregation of volume for trading fee discounts,” while offering Gemini services to a host of customers.
A few months back Binance launched their long-anticipated Sub-Account Feature, bringing improved managerial control to institutional account holders. The new feature allowed entities to maintain multiple trading accounts in their organization, though control access and other tools are provided with the accounts.
Gemini combines its forces with the Network of Silvergate Exchange
Gemini announces its new move via its official blog post on the 27th of August 2019. The announcement revolves around the massive benefit concerning Gemini’s partnership with Silvergate. Moreover, Silvergate is an institutional investment client of Gemini that would allow the clients to withdraw and deposit money.
There is a subtle catchy thing that comes with depositing the money. The announcement suggests that the users can only deposit US Dollars for the time being. In addition to this, the users can deport USD directly from their respective banking accounts at any time of the day. The report suggests that this is specifically industry standard as far as people consider cryptocurrency, not fiat currency.
In addition to this, the announcement also suggests that Gemini is integrating itself into the API of SEN. In the long run, the integration of SEN into API would enable Gemini in processing the deposits of the customers. Moreover, the customers can also put forward their withdrawal requests without any distractions in real-time.
What does the official blog post say?
The SEN would allow Gemini’s institutional customers in depositing as well as withdrawing the USD in the Gemini account. The customers can use it in real-time around the year. The cryptocurrency industry can be put forward for transaction at any time of the day, week, or year like electronic-mail.
Nevertheless, this was not the case with the fiat currency. When it comes to transferring of fiat currencies, they are meant to be done during the official business or banking hours. The new step from SEN is an initiative which would change the conventional ways of banking.
At the time of writing, Gemini is completely integrated with the API of SEN. Moreover, this would allow people to process the withdrawals and deposits instantaneously and automatically. The collaboration joins the institutional customers to move their fiat currency to and from Gemini. The experts are suggesting this would be the same as the moving cryptocurrency.
Moreover, the financial service provider, Silvergate Bank, supports the exchanges of digital currency of the network. In addition to this, the bank also encourages cryptocurrency investors to join them. The banking service provider wants to facilitate the movement of USD between distinctive participants.
Growth of Silvergate in 2018’s fourth quarter
Silvergate did also file a new report with the Exchange and Securities Commission of the US. Immediately, after that, Silvergate did garner around 60 new digital currency customers back in 2018 Q4. The latest report filing suggests that Silvergate did already sever about 542 clients who are into cryptocurrency. Nevertheless, back in September 2018, the reports indicate that Silvergate did serve around 483 customers.
The recent reports suggest that more than $8.3 billion has already been invested in several cryptocurrency projects. The cryptocurrency market had to go through venture funding around 12 months ago.
In the previous week, Gemini said that it would expand its business to Australia. The Android and iOS smartphone users can use the services from mobile apps on Android and iOS devices. Given that there is a regulatory obligation concerning the cryptocurrency market, the industry is still making a lot of buzzes.
Gemini Announces the Addition of Its Market Data to CME’s Bitcoin and Ethereum Indices
The Winklevoss-owned cryptocurrency exchange joins the industry’s leading exchanges to help CME price its Bitcoin futures
Gemini, the leading cryptocurrency exchange founded by the Winklevoss twins, has announced that its data will be added to the Chicago Mercantile Exchange (CME). The futures exchange has cryptocurrency indices for Bitcoin and Ethereum that are provided by CF Benchmarks.
Prior to Gemini, Bitstamp, itBit, Coinbase, and Kraken joined the list of CF Benchmarks’ data sources. Notably, the latter inked an acquisition deal with the startup back in February for at least $100 mln.
Each of these exchanges had to go through a meticulous vetting process. CME has high requirements for the quality of market data as well as security standards and regulatory compliance.
Being a vocal proponent of common-sense cryptocurrency regulations, Gemini undeniably checks all these boxes.
We appreciate these standards and look forward to continuing to build trust in crypto; trust is our product,” the exchange claims.
Pricing Bitcoin futures
Starting from Aug. 30, Gemini will serve as a constituent exchange for CME that is trading cash-settled Bitcoin futures contracts. CME remains the only exchange that offers this product to institutional investors after the exodus of its next-door rival.
There is a heating race to occupy the cryptocurrency pricing niche. The NYSE Bitcoin Index was launched back in 2015, becoming the very first product of this kind. Since then, other traditional players stepped with their sophisticated solutions to mainly serve the needs of institutional players.