Upbit Shifts User Data to US AWS Servers for Enhanced Reliability and Compliance

South Korea's largest cryptocurrency exchange, Upbit, has announced a significant change to its privacy policy, set to take effect on October 1. The update involves storing user data on United States servers, specifically Amazon Web Services (AWS).

This move addresses privacy and regulatory concerns as storing data in the US may help Upbit comply with international standards and regulations. It also reflects the exchange's ongoing efforts to enhance its security and service quality.

Upbit Adopts AWS to Boost Uptime, Performance, and Data Protection

Crypto exchange Upbit is adjusting its privacy policy to enable user data storage on US servers. Upbit chose AWS for this move because its infrastructure can handle large-scale operations and adapt to growing demands.

The crypto exchange's transition to AWS is a strategic move to enhance service continuity and data security. By partnering with a reputable cloud service provider like AWS, Upbit can leverage a highly reliable infrastructure.

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

Also, Amazon Web Services aligns with best practices in data security, helping the exchange safeguard its user's sensitive information better.

Hence, the switch to AWS is expected to fortify Upbit's ability to provide reliable and credible services, enhancing its performance and uptime. The AWS cloud infrastructure minimizes downtime and ensures faster processing speeds, allowing Upbit to create a seamless experience for its users.

This move aligns Upbit with industry trends as crypto exchanges like Coinbase have already adopted AWS for their data storage needs.

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

Upbit's AWS Move Raises Privacy Concerns

Upbit's decision to store user data on AWS introduces new privacy and jurisdictional challenges. One of the key concerns is that user data, now hosted on US servers, will be subject to American laws and regulations.

The Clarifying Overseas Use of Data (CLOUD) Act of 2018 is an important law to consider. This legislation empowers law enforcement agencies in the US to demand access to data stored by firms like AWS, even if that data is housed overseas.

This raises red flags for international users from countries with stringent data privacy laws, like the European Union or South Korea. Moreover, there is a potential conflict between these local privacy protections and US laws, which could undermine users' confidentiality.

South Korea's Crypto Market Sees Strong Growth Due to Kimchi Premium Effect

A recent Chainalysis report highlights strong growth in South Korea's crypto market. The growth is largely driven by the Korea Premium Indes (KPI), also called the Kimchi Premium.

The KPI tracks the difference in prices of cryptocurrencies like Bitcoin and Ethereum between South Korean crypto exchanges and global markets.

According to the report, high institutional trading, strong local demand, and unique market conditions pushed crypto prices on South Korean exchanges to exceed global averages.

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