As a leader in web3 infrastructure in Latin America, Parfin continues to take solid steps towards providing its clients with an increasingly secure experience in digital asset management. The company has been recognized by EY with the SOC 2 Type II certification, which is one of the main global references in information security.

The certification serves as proof of a commitment to developing secure environments, providing clients with the assurance that they can transact their information with confidence and without major concerns regarding data protection. This is a concept present both in the permissioned blockchain Parchain and in the platforms for custody, trading, tokenization, and management of digital assets.

To start: what is the SOC 2 Type II certification?

SOC 2 Type II is a global certification that aims to ensure data security and privacy. To receive the certification, it is necessary to comply with a series of standards.

"SOC certifications - especially SOC 2 Type II - are widely recognized in various markets where ensuring data and transaction security and confidentiality are mandatory and often regulated," explains Flavio Gaeta, IT and Cybersecurity Director at Parfin. Other examples of these markets include healthcare service providers, banks, insurers, and other financial institutions.

As the certification attests that the company meets all the requirements established by the quality and security standard, those who choose to do business with this company can be assured that the data transacted on its platforms will be fully protected and within legal requirements.

The certification is divided into types, such as SOC 1, SOC 2, SOC 3, and SOC for Cybersecurity. To summarize their purposes, SOC 1 ensures financial controls and reporting, SOC 2 covers a broader scope by addressing controls related to security, integrity, availability, confidentiality, and privacy of data - and their processing. SOC 3 is similar to the previous type, but with a difference in the level of privacy for the information contained in the report (SOC 3 has a more public nature and is recommended for data sharing with service providers, customers, and other counterparties).

In general, each class of certification also has subtypes (SOC 1 Type I, SOC 2 Type II, etc.): Type I deals with defining the available controls and adhering to the requirements of that scope, while Type II deals with applying the controls defined in Type I, their effectiveness, evidence, and proof within a specific period of time.

Is this the best type of certification for data protection?

Considering the recent escalation of cyber-attacks and the exploitation of security breaches to target companies, institutions and organizations of various sizes and market segments, the adoption of standards such as SOC is becoming mandatory - a trend reinforced by the growing chain of dependencies between companies and services provided.

In this scenario, for a company to guarantee a service adhering to SOC 2 Type II, for example, it should ensure that its service providers are also compliant," says Gaeta.

SOC 2 Type II is one of the best certifications for data protection available in the market today, as it is highly sought after by companies looking to reinforce the efficiency of their digital security strategies when it comes to quality.

For sectors such as Financial Services or in cases where services have a high level of criticality, any security failure or deviation can cause irreversible impacts to the company's core business. The loss of trust by customers, for example, can lead to the failure of great ideas and promising businesses.

That's why it's so important to be alongside players like Parfin, who follow the most recognized security and privacy standards in the market.

"When the mapping of operational risks increases in complexity, the adoption of security and operation standards - such as SOC or ISO - is essential for greater clarity about risks in the chain of dependencies." says Gaeta

Are the requirements higher for those who will operate crypto assets in web3?

“Not by chance, the term web3 is often related to the concept of distribution or decentralization of services/information. While this decentralization has very positive and desirable aspects, it naturally means an additional complexity in the controls and processes of these same distributed information and services", answers Gaeta.

Therefore, companies willing to adopt web3 concepts and practices should pay even more attention to investments in internal processes and controls, establishing the use of standards such as SOC 2 Type II certification as a guide and facilitator in this endeavor.

And why is it important to choose a certified partner?

The advantages for those who choose partners with SOC 2 Type II certification begin with the guarantee of security and privacy of data through the use of encryption, security monitoring, access controls, and even the existence of business continuity plans. The certification also brings credibility to companies that deal, for example, with sensitive data such as financial or health information.

Regarding legal compliance, the certification is a guarantee that the partner complies with its regulations, which will prevent the imposition of fines and sanctions. In the case of infrastructure digital asset companies, such as Parfin, the high volume of financial information and transactions requires greater care in managing data protection. As it is a new and still little-known market, certification helps bring confidence to those who are in doubt about moving forward when closing a deal.

Parfin is your partner

Alongside Parfin, your company has the assurance of confidentiality and privacy of transactions made in a digital environment. Do you want to have the security to explore a world full of new possibilities with the best by your side? A real partner in crypto assets is Parfin!

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