Upbit, the largest cryptocurrency exchange in South Korea, has announced that it will change its privacy policy to store user data on United States servers, effective from Oct. 1.
The exchange will
store
user data on Amazon Web Services (AWS) servers in the US to enhance service reliability while addressing privacy and regulatory considerations.
Cointelegraph contacted Upbit and AWS for comment but received no response by publication.
Related:
South Korea’s crypto market growth fueled by rising Premium Index: Chainalysis
Move to AWS explained
The move to AWS is a strategic choice to improve service continuity, scalability and data security by utilizing the globally recognized cloud service provider.
The infrastructure provided by AWS is designed to protect against data breaches, system failures and cyberattacks and can ensure the safety of user information during adverse events.
The switch is expected to improve Upbit’s service reliability, particularly performance and uptime, and follows other crypto exchanges like Coinbase’s adoption of AWS for data storage.
Related:
South Korea to inspect crypto exchanges for suspicious transactions
Data and regulatory considerations
Upbit’s decision to store user data on AWS introduces privacy and jurisdiction considerations, such as the fact that user data will be subject to US laws and regulations.
The Clarifying Lawful Overseas Use of Data (CLOUD) Act enacted in 2018 enables US law enforcement agencies to force companies like AWS to comply with data requests — including data stored overseas.
This change implies that US authorities could request South Korean Upbit user data, raising data privacy concerns for international users, especially in countries with strict privacy laws.
Related:
South Korean crypto exchange employees out-earn staff at major banks
South Korea crypto market growth
A recent report by Chainalysis highlighted that South Korea’s crypto market has witnessed significant growth, driven by the
rise of the Korea Premium Index (KPI
).
Also referred to as the Kimchi Premium, the KPI measures the price difference for cryptocurrencies like Bitcoin (
BTC
) and Ether (
ETH
) between South Korean exchanges and global markets.
Chainalysis’ report revealed that institutional trading, local demand, and market conditions in South Korea have caused crypto prices on local exchanges to soar above global averages.
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Upbit to Utilize AWS for User Data Storage Essential Information for Users