Upbit to Transfer User Data to AWS Servers Starting October 1
The largest cryptocurrency exchange of South Korea, Upbit will be transferring user data to the servers at Amazon Web Services in the United States beginning from October 1. It is part of a major facelift in the cryptocurrency exchange’s privacy policy, intended to make sure that there is greater reliability of service, besides addressing several regulatory and privacy issues.
Improvement in Continuity and Security in Service
The exchange said the shift to AWS infrastructure would help raise the continuity, scalability, and security of its services. AWS’s globally recognized infrastructure would provide robust security features intended for keeping users’ data safe from potential perils, including data breaches and system failures, to various kinds of cyberattacks.
Major Exchanges Turn to AWS for Data Storage
By doing so, it follows the trend adopted by major exchanges like Coinbase in storing its data on AWS. Besides all benefits accruing from advanced security provided, AWS is expected to minimize the risk of data compromise in adverse eventualities, thus ensuring safety and reliability for users’ data.
Privacy Concerns under CLOUD Act
On the flip side, storing data with US-based servers raises concerns on data jurisdiction and privacy. It was the Clarifying Lawful Overseas Use of Data Act, passed two years ago, that granted US law enforcement the right to compel companies like AWS to comply with requests for data, even when the information resides abroad. The question now arises that US regulatory bodies could have access to Upbit’s user data, including those of their South Korean customers. This may raise some potentially complicating privacy issues for international users of such cryptocurrencies and exchanges, especially in jurisdictions which have strict data protection laws.
South Korean Crypto Market Heats Up
Upbit changed its policy against the background of rapid growth in the South Korean cryptocurrency market. A report by Chainalysis recently pointed out that this is highly driven by what is referred to as the KPI, or Kimchi Premium – the difference in price of cryptocurrencies such as Bitcoin and Ether between South Korean exchanges and those on a global basis, because of high demand and good market conditions in the country.
Young South Koreans Turn to Crypto Investments
A recent survey suggests that young South Koreans increasingly distrust their national pension system and instead look at cryptocurrencies and stocks as better options for the future. Over three-quarters of the 20-39 age group said they do not trust state-issued pensions. More importantly, over half of those making their own pension plans are investing in stocks and crypto.
Future Regulations and Impact on the Market
The South Korean government reportedly intends to propose much harsher regulations for the listing of tokens on an exchange, also including hacked tokens. The guidelines, set to be disclosed by the end of this month, will come into effect to provide a further strengthening of investor protection and further regulation of the country’s fast-growing crypto market.
As Upbit moves forward in transferring its data to AWS, the crypto community will be most keen on how such a move would affect user privacy and changes in the whole market landscape.
