- Secures foundation for institutional market expansion with global-standard trust infrastructure
- Verification by KPMG confirms internal control and security excellence, strengthening custody competitiveness
SEOUL, South Korea – BDACS, a leading digital asset custody specialist, announced today that it has successfully obtained the ‘SOC 1 Type 2’ attestation from global accounting firm KPMG last month.
The SOC 1 (Service Organization Control) Type 2 report is a global standard established by the American Institute of Certified Public Accountants (AICPA). It involves an independent auditor verifying whether a service organization’s internal controls have been designed and operated effectively over a specific period.
The SOC 1 Type 2 attestation comprehensively verifies not only the design of a company’s internal controls but also their actual operating effectiveness, serving as a critical indicator for financial institutions and corporations when evaluating the reliability and stability of a third-party service provider.
Through this achievement, BDACS has officially demonstrated that its internal control capabilities meet the rigorous standards of global financial institutions. The SOC 1 Type 2 report specifically verifies the adequacy of internal controls related to financial reporting, ensuring high reliability in the processing of accounting and financial data.
During the audit, KPMG conducted a meticulous examination of BDACS’s overall digital asset custody services, where key control areas included access control and authorization management, cybersecurity framework, private key management and wallet operation processes, system operational stability, and internal controls supporting the reliability of financial reporting.
Achieving SOC 1 Type 2 attestation through KPMG, a world-renowned accounting firm, is a significant milestone that validates the institutional-grade reliability of BDACS’s custody infrastructure. With this certification, we have met the high standards of trust required by our institutional clients.
“Achieving SOC 1 Type 2 attestation through KPMG, a world-renowned accounting firm, is a significant milestone that validates the institutional-grade reliability of BDACS’s custody infrastructure,” said Harry Ryoo, CEO of BDACS. “With this certification, we have met the high standards of trust required by our institutional clients”.
Building on this foundation, BDACS plans to accelerate its custody business for both domestic and international institutional investors. The company remains committed to proactively responding to the global regulatory environment while strengthening market confidence through continuous external audits and the advancement of its security systems.nnn
Frequently Asked Questions (FAQ)
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n- What is SOC 1 Type 2 attestation?
n- SOC 1 Type 2 is a global standard established by AICPA where an independent auditor verifies that a service organization's internal controls were effectively designed and operated over a specific period.
n- Who conducted BDACS's SOC 1 Type 2 audit?
n- The audit was performed by KPMG, one of the global Big Four accounting firms, covering BDACS's entire digital asset custody service operations.
n- What areas were verified in the SOC 1 Type 2 audit?
n- Key control areas included access control and authorization management, cybersecurity systems, private key management and wallet operations, system operational stability, and financial reporting controls.
n- What is the difference between SOC 1 Type 1 and Type 2?
n- Type 1 evaluates internal control design at a specific point in time, while Type 2 comprehensively verifies that controls operated effectively over an extended period, representing a higher level of assurance.
n- What does this attestation mean for institutional clients?
n- SOC 1 Type 2 is a key indicator for financial institutions and corporations evaluating custody providers, confirming BDACS meets global financial institution-grade internal control standards.
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