Upbit's AWS Shift Boosts Reliability, Raises Privacy Concerns

Upbit, South Korea's leading cryptocurrency exchange, has announced a significant update to its privacy policy, effective September 2025. The changes focus on refining data collection practices for investment competitions, including the Upbit Major League and Champions League. The revised policy expands the categories of data collected for these events, such as masked nicknames, transaction details, and leaderboard information, to enhance user experience and competition transparency Revision of Upbit Privacy Policy (Takes Effect from ... - CoinCarp^[1].

The update also includes a strategic shift in data storage infrastructure. Starting October 1, Upbit will transition user data to Amazon Web Services (AWS) servers in the United States. This move aims to improve service reliability, scalability, and security by leveraging AWS's robust infrastructure, which is designed to mitigate risks such as data breaches and system failures Upbit’s Major Shift: New Data Storage Policy and What It Means …^[2]. The decision aligns with industry trends, as platforms like Coinbase have similarly adopted AWS for data storage.

However, the shift raises jurisdictional concerns. Under the U.S. Clarifying Lawful Overseas Use of Data (CLOUD) Act, American law enforcement agencies can compel AWS to comply with data requests, even for information stored abroad. This means U.S. authorities could potentially access data from South Korean Upbit users, a scenario that may conflict with stricter data protection laws in other jurisdictions Upbit to store user data on AWS: What users should …^[3]. While Upbit emphasizes that the move is intended to strengthen compliance and service continuity, users are advised to consider the implications for privacy rights.

The policy changes coincide with South Korea's growing cryptocurrency market, driven by factors such as institutional trading and the Kimchi Premium. According to Chainalysis, South Korean exchanges have seen prices for cryptocurrencies like Bitcoin and Ether exceed global averages due to strong local demand and favorable market conditions. Upbit's updates reflect broader efforts to adapt to regulatory and technological shifts in the region Upbit’s Major Shift: New Data Storage Policy and What It Means …^[2].

For users, the revised policy underscores the importance of understanding data privacy frameworks and jurisdictional differences. While the AWS transition is expected to enhance service reliability, the potential for cross-border data access remains a critical consideration. Upbit has not responded to requests for further clarification on how user data will be protected under the new arrangement Upbit to store user data on AWS: What users should …^[3].

The revisions highlight the evolving landscape of digital asset exchanges, where balancing service efficiency with data privacy is increasingly complex. As South Korea's crypto market continues to expand, platforms like Upbit must navigate regulatory demands while maintaining user trust. The effectiveness of these updates will depend on their implementation and the transparency of data governance practices in the coming months.