Upbit to Store User Data on AWS Servers Starting October 1
Ruholamin Haqshanas is a contributing crypto writer for CryptoNews. He is a crypto and finance journalist with over four years of experience. Ruholamin has been featured in several high-profile crypto...
Upbit, South Korea’s largest cryptocurrency exchange, has revealed plans to store user data on Amazon Web Services (AWS) servers located in the United States starting October 1.
In an announcement, the exchange said the decision, which comes as part of a change in its privacy policy, is intended to bolster service reliability and address privacy and regulatory considerations.
Upbit said it seeks to enhance the continuity, scalability, and security of its services by leveraging AWS’s globally recognized infrastructure.
The move by Upbut comes as major exchanges like Coinbase have also adopted AWS for data storage to safeguard user information from potential threats such as data breaches, system failures, and cyberattacks.
The robust security features offered by AWS are expected to mitigate risks and ensure the safety of user data during adverse events.
However, the switch to US-based servers introduces complexities related to data jurisdiction and privacy.
Under the Clarifying Lawful Overseas Use of Data (CLOUD) Act, enacted in 2018, US law enforcement agencies have the authority to compel companies like AWS to comply with data requests, even for information stored overseas.
This provision raises concerns that Upbit’s user data, including that of South Korean clients, could be accessible to US authorities, posing potential privacy issues for international users, especially those in regions with stringent data protection laws.
The change in Upbit’s data storage policy comes amid a surge in South Korea’s cryptocurrency market.
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