LONDON (Reuters) – Elliptic, a firm that stores bitcoins for financial services clients, said it had received an accreditation from a “Big Four” accounting firm that signified it operates on the same standards as a custodian bank.
Elliptic said the accreditation from KPMG, which followed a review of its financial controls, regulatory compliance, internal access controls and other areas, was an industry first and a significant step for the company.
The UK-based company is known for its Elliptic Vault product, a so-called deep cold storage service which allows bitcoin holders to store holdings of the digital currency in secure locations offline to shield them from hackers.
“KPMG’s accreditation is an important milestone,” James Smith, Elliptic’s chief executive officer, said in a statement on Monday.
“(It) demonstrates to our customers that we have the rigorous internal processes and controls expected of any traditional financial services provider,” he said.
The accreditation, known formally as the ISAE 3402 Type 1 review, comes after a number of scandals involving bitcoins spooked potential enthusiasts of the digital currency.
Last week, Bitstamp, one of the largest exchanges for bitcoin trading, said it had suspended its service after a security breach, resulting in the loss of about 19,000 bitcoins.