Press Release: Knox Custody Completes Soc 2 Type II Audit
Becoming the first and only custodian in Canada with a SOC 2 Type II Certification.
MONTREAL — December 17th 2020 — Earlier in 2020, Knox allowed the world’s first bitcoin exchange to be protected for the full value of their customers’ holdings. Later the same year, we are announcing the successful completion of a SOC 2 Type II audit, becoming the only custodian in Canada with SOC 2 Type II certification. This is a major milestone for Knox and the Canadian Bitcoin industry, historically tainted by catastrophic data breaches and loss of customers’ funds. Combined with the most comprehensive bitcoin insurance policy in both breadth of risk coverage and depth of limit capacity, Knox is further reinforcing its position as a leading risk management firm providing custodial services for investors, funds and enterprise clients.
SOC 2 Type II attestations are essential to show robust internal controls and security processes are established within our firm for both their design and implementation, further demonstrating a maturity in our organizational governance. As part of the examination, our auditors collected internal documentation and performed thorough testing of our risk management framework, internal controls, data access, and security around critical custodial infrastructure.
“Paired with our comprehensive insurance policy bound by Marsh, the SOC 2 Type II certification is an excellent demonstration of our ability to deliver on the industry-beating internal controls we set for ourselves, our clients and our insurers”, said Christopher Banks, Financial Controller at Knox Custody.
Third-party certifications, such as SOC 2 Type II, which stands for System and Organization Controls (SOC), assess and subsequently test controls relating to the Trust Services Criteria —providing an added level of verification of our internal systems, which are covered by the audit. The review and audit included a thorough testing of the effectiveness of Knox’s custodial infrastructure, underlying database controls and physical security measures. Such verifications are essential in providing assurances to our clients, which are complementary to our current insurance policy.
“We have decided to complement our insurance with a SOC 2 Type II audit to continue to provide strong assurances of security and reliability around Knox to all market participants. Our aim is to advance security standards around bitcoin custodial services”, said Alex Daskalov, CEO at Knox Custody.
In traditional technology and financial services industries, SOC 2 reviews are the norm to demonstrate security assurances and regulatory compliance. At Knox Custody, our goal is to provide responsible custodial services built on rigorous risk management principles to safeguard customers’ bitcoin holdings, and protect them with a comprehensive insurance policy. We have now achieved both milestones, and are excited to be moving forward with a robust custodial service for enterprise, funds and investors looking to rely on a trusted partner.
As larger amounts of risk originate from custodial service providers, security standards will emerge and their correct execution will be deemed not only important but critical. Offering responsible products and services to sophisticated market participants, our clients have rigorous vendor procurements to minimize their risk exposure. As the industry matures with more sophisticated participants, due diligence procedures will necessarily strengthen, and rightfully so. The successful completion of SOC 2 Type II is not only an acknowledgment of industry maturation, but a demonstration of the commitment of Knox towards advancing custodial risk management in the Bitcoin industry.
About Knox Custody
Based in Canada, Knox is a Bitcoin custody provider focused on key management with 1:1 insurance coverage, allowing service providers, investors, and fiduciaries to mitigate the downside risk of theft and loss. Knox is on a mission to facilitate an ethical financialization of Bitcoin with financial services focused on risk management. Institutional investors include Fidelity Investments Canada, Initialized, and iNovia.
Alex Daskalov, Chief Executive Officer
+1 (647) 616-0348
Thibaud Maréchal, Vice President
+33 6 18 53 84 88