Upbit moves user data to US AWS servers for improved reliability and compliance

South Korea’s largest cryptocurrency exchange Upbit has announced a significant change to its privacy policy, which is set to go into effect on October 1. The update includes storing user data on servers in the United States, specifically Amazon Web Services (AWS).

The move is intended to address privacy and regulatory concerns, as keeping data in the US could help Upbit complies with international standards and regulationsIt also reflects the exchange’s ongoing efforts to improve security and quality of service.

Upbit Implements AWS to Increase Data Availability, Performance, and Protection

Cryptocurrency exchange Upbit is adjusting its privacy policy allowing user data to be stored on servers in the USAUpbit chose AWS because its infrastructure can handle large-scale operations and adapt to growing demands.

The cryptocurrency exchange’s transition to AWS is a strategic move to increase service continuity and data securityBy partnering with a renowned cloud provider like AWS, Upbit can leverage a highly reliable infrastructure.

AWS offers advanced protection against system failures, data breaches, and cyberattacks, ensuring that user information is safe. Its security can be trusted even during cyberattacks or adverse events.

Additionally, Amazon Web Services employs data security best practices, helping the exchange better protect its users’ confidential information.

Hence, the move to AWS is expected to strengthen Upbit’s ability to provide reliable and trustworthy services, increasing efficiency and uptime. AWS cloud infrastructure minimizes downtime and provides faster processing speeds, enabling Upbit to create a seamless experience for its users.

The move is in line with industry trends as cryptocurrency exchanges such as Coinbase has already implemented AWS for its data storage needs.

AWS is also known for its ability to dynamically scale resources. As such, exchanges can handle increased traffic during peak trading periods without compromising performance. Additionally, its robust infrastructure reduces the risk of system outages, ensuring service continuity even during high-demand events.

Upbit’s move to AWS raises privacy concerns

Upbit’s decision to store user data on AWS introduces new privacy and jurisdictional challenges. One major concern is that user data, currently hosted on servers in the US, will be subject to US laws and regulations.

The Clarifying Overseas Use of Data (CLOUD) Act of 2018 is an important law to consider. This law authorizes law enforcement in the U.S. to request access to data stored by companies like AWS, even if that data is stored overseas.

This raises red flags for international users from countries with strict data privacy laws, such as the European Union or South Korea. In addition, there is a potential conflict between these local privacy laws and those of the United States, which could violate user confidentiality.

South Korea’s cryptocurrency market sees strong growth thanks to kimchi premium effect

Recent Chain Analysis Report highlights the strong growth in the South Korean cryptocurrency market. This growth is largely driven by the Korea Premium Indes (KPI), also known as Kimchi Premium.

The KPI tracks the price differences of cryptocurrencies such as Bitcoin and Ethereum between South Korean cryptocurrency exchanges and global markets.

According to the report, high institutional turnover, strong local demand and exceptional market conditions have driven the cryptocurrency prices higher. South Korean stock markets to exceed global averages.