Tether successfully goes through the System Organization Control (SOC) Audit Type 1, turning it into a complete safety compliance business. Though it is the first stage, it speaks volumes about the attitude of the company towards safety issues.
The audit comes under the gold standard category regarding safety compliance and is the creative child of the American Institute of Certified Public Accountants (AICPA). Incidentally, Tether is known to be the most significant business house in the cryptocurrency arena.
The SOC 2 looks into five core issues, the top priority being safety. This involves setting up firewalls, intrusion detection, and improved verification protocols for protecting customer data. This is followed by the accessibility factor, which looks into maintaining a dependable operating network and solving effective problems.
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Added to that is processing integrity, which evaluates the mechanism’s functions that it is meant to fulfill, such as releasing correct data at the correct price and time. Then there is the aspect of confidentiality, which prevents data availability, along with a declaration to the concerned persons and businesses and puts stress on encrypting data at the time of transmission. Last but not least is the matter of privacy, which ascertains proper collection and usage, retention, and declaration of personal information.
The audit report focuses on four factors: safety, accessibility, processing integrity, and confidentiality. This ascertains that Tether is equipped with the correct IT control processes to ensure all their mechanisms are safe and available when required, with the information coming with privacy. It looks into firewalls, intrusion detection, and improved customer verification. Added to that are the dependability of the network and the speed of problem-solving.
According to the CEO of Tether, Paolo Ardoino, compliance factors help satisfy their customers by controlling their data and assets with one of the most stringent data and information safety measures ever.
Tether is known to periodically update its safety measures via inventive technology, complete clarity, and responsibility towards the users of its stablecoin. The audit is yet another step for the company in aligning with its pledge to provide all safety-related aspects to its token holders.
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This audit will be conducted yearly to ensure its functions and safety measures are always maximized. 2024-25, Tether intends to obtain the SOC 2 Type 2 Certificate. This focuses on all factors related to safety, accessibility, confidentiality, privacy, and processing integrity. In addition to that, the functioning capacity of Tether’s internal controls will be studied over a period of one year.
