Upbit to Raise Cold Wallet Ratio to 99% Amid Liquidity Concerns

South Korea's largest cryptocurrency exchange, Upbit, announced it will raise its cold wallet storage ratio to 99% as part of a comprehensive security overhaul after hackers stole approximately $31 million in Solana-based assets on November 27. Currently holding 98.33% in cold storage, Upbit aims to reduce hot wallet holdings to below 1%, significantly exceeding the domestic regulatory minimum of 80% and setting a potential global industry benchmark compared to exchanges like Coinbase (98%) and Kraken (95-97%). While this move bolsters security, analysts worry about liquidity trade-offs in South Korea's regulated, isolated market. Slower withdrawal speeds during high volatility could exacerbate market inefficiencies, as seen when withdrawal suspensions after the recent hack caused severe price divergence and amplified volatility for trapped assets.

(Source：BeInCrypto)