Upbit has increased the proportion of cold wallets to 99%, far exceeding the 80% cold storage standard required by South Korean regulations

According to Beincrypto, Upbit announced that it will increase its cold wallet storage ratio to 99%, while reducing its hot wallet ratio to below 1%. This move comes after a hack on November 27 that resulted in the theft of $31 million worth of Solana assets.

Upbit currently has a cold wallet ratio of 98.33%, far exceeding the 80% minimum standard set by South Korea's "Virtual Asset User Protection Act" and the 82-90% levels of other South Korean exchanges, as well as surpassing major global exchanges like Coinbase at 98% and Kraken at 95-97%.

However, analysts are concerned that the extremely low hot wallet reserves in South Korea's closed market environment may delay withdrawal speeds. Last month, during Upbit's suspension of withdrawals, the interruption of arbitrage channels caused several altcoins to surge several times within hours.