Upbit, South Korea’s largest cryptocurrency exchange, is updating its privacy policy to transfer user data to Amazon Web Services (AWS) servers in the United States, effective October 1. This move aims to improve service reliability while ensuring compliance with privacy and regulatory requirements.
By utilizing AWS, a globally recognized cloud service provider, Upbit seeks to enhance data security, scalability, and system continuity, protecting user information from breaches, cyberattacks, and system failures. This transition follows similar moves by other major exchanges, such as Coinbase, to leverage AWS for data storage.
However, this change raises privacy and jurisdiction concerns. Under the 2018 CLOUD Act, U.S. law enforcement can compel AWS to provide data stored on its servers, including data from overseas users. This introduces potential privacy risks for Upbit’s international users, especially those in countries with stricter data protection laws.
This development comes amid significant growth in South Korea’s crypto market. According to a recent report by Chainalysis, the rise of the Korea Premium Index (KPI)—which measures the price difference for cryptocurrencies like Bitcoin and Ether between South Korean exchanges and global markets—has fueled local demand, leading to crypto prices exceeding global averages on South Korean exchanges.
Source: cointelegraph.com
