Nexo, a prominent player in the digital assets industry, has further solidified its commitment to data security through the successful renewal of its SOC 2 Type 2 audit and the completion of a new SOC 3 Type 2 assessment. Both assessments, conducted by independent auditor A-LIGN, have affirmed Nexo’s adherence to stringent security standards with no exceptions.

The SOC 2 Type 2 audit and SOC 3 Type 2 report reflect Nexo’s ongoing dedication to safeguarding user information. Nexo expanded the audit scope to include additional Trust Service Criteria, explicitly focusing on Confidentiality. This extension underscores the company’s proactive approach in addressing evolving security concerns.

SOC 2, maintained by the American Institute of Certified Public Accountants (AICPA), evaluates an organization’s internal controls related to security, availability, processing integrity, confidentiality, and privacy. Nexo’s successful SOC 2 Type 2 audit indicates rigorous adherence to these standards, confirming that its systems meet high levels of security and privacy without any noted exceptions.

Similarly, the SOC 3 Type 2 assessment provides a public-facing summary of the SOC 2 audit, affirming the company’s compliance in a manner accessible to stakeholders and clients. This report is a testament to Nexo’s robust security practices and transparency.

Technical Analysis of Nexo’s Security Measures

Nexo’s adherence to the SOC 2 Type 2 and SOC 3 Type 2 standards highlights several critical aspects of its security infrastructure:

1. Security and Confidentiality: The SOC 2 audit focused on the Trust Service Criteria of Security and Confidentiality. The successful assessment confirms that Nexo’s systems are designed to protect against unauthorized access and ensure that sensitive information is handled carefully.

2. Scope Expansion: By including additional Trust Service Criteria, Nexo demonstrates a comprehensive approach to data protection. This expansion reflects a commitment to meeting existing security standards and anticipates and addresses emerging challenges in data privacy.

3. Independent Validation: The engagement of A-LIGN, a well-regarded firm with two decades of experience in security compliance, provides an added layer of credibility. The thorough and unbiased nature of the audit underscores the reliability of Nexo’s security measures.

Nexo’s recent achievements build on its previous successes, including its first SOC 2 Type 2 audit conducted a year ago. The company’s extensive track record includes certifications such as the CCSS Level 3 Cryptocurrency Security Standard, ISO 27001, ISO 27017, and ISO 27018, as well as the CSA Security, Trust & Assurance Registry (STAR) Level 1 Certification. These credentials collectively reinforce Nexo’s position as a leader in digital asset security.

Milan Velev, Chief Information Security Officer at Nexo, emphasized the importance of these assessments in providing clients with peace of mind. “Completing the gold standard in client data protection for the second consecutive year brings me great pride and a profound sense of responsibility,” said Velev. “It is crucial for Nexo customers to have compliance peace of mind, knowing that we diligently adhere to security regulations and remain committed to annual SOC audits.”

Looking Forward

Nexo’s ongoing efforts to enhance data security reflect a broader trend in the digital assets sector, where regulatory compliance and security best practices are increasingly paramount. As the industry evolves, Nexo’s proactive stance on data protection positions it well to navigate future challenges and maintain its leadership in the digital asset space.

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Vested Interest Disclosure: This author is an independent contributor publishing via our business blogging program. HackerNoon has reviewed the report for quality, but the claims herein belong to the author. #DYOR.