Upbit will copy user data to AWS servers beginning October 1
The biggest bitcoin exchange in South Korea, Upbit, has declared a major change in its data storage methods, moving customer information to US-based Amazon Web Services (AWS) servers. Effective from October 1, this modification is part of Upbit’s updated privacy policy meant to guarantee regulatory compliance and increase service dependability.
Using AWS’s internationally known infrastructure, Upbit hopes to improve service continuity, scalability, and general security of their platform. Strong security features of AWS will enable to safeguard user data from possible breaches, system outages, and cyberattacks, thereby assuring that personal information stays safe even under unanticipated circumstances. The trade thinks this transition would improve service performance and uptime, thus keeping it in step with industry giants like Coinbase, who also utilizes AWS for data storage.
This change, nevertheless, brings privacy and jurisdictional questions. Among other U.S. legislative rules, the Clarifying Lawful Overseas Use of Data (CLOUD) Act will apply to user data presently kept on American servers. This legislation lets US authorities ask access to data kept on servers under their jurisdiction, even if the users are located abroad. For overseas users, particularly those in areas with more stringent data protection rules, this creates possible privacy issues.
Upbit’s choice to migrate to AWS coincides with notable expansion in the cryptocurrency sector of South Korea. According to a recent analysis, the Korea Premium Index (KPI), often referred to as the Kimchi Premium, emphasizes the price difference between South Korean exchanges and worldwide markets for cryptocurrencies including Bitcoin and Ether. Strong institutional trading, good market conditions, and high local demand have helped to explain this price disparity and hence support the growth of the South Korean cryptocurrency sector.
Notwithstanding the issues, Upbit anticipates its migration to AWS to improve the security and performance of its platform, therefore providing consumers with a more consistent trading environment. Exchanges like Upbit are ensuring they remain competitive while satisfying legal needs as the crypto sector keeps expanding.
