Upbit's hot wallet custody ratio 1.67%…"Lowest level domestically"

Dunamu, which operates the digital asset exchange Upbit, said on the 10th that as of the end of October this year, Upbit's hot wallet custody ratio is 1.67%. The cold wallet custody ratio is 98.33%, significantly exceeding the legal standard.

A hot wallet is a wallet connected to the internet used for processing deposits and withdrawals, while a cold wallet is an offline wallet separated from the internet. The Virtual Asset User Protection Act requires that 80% or more of customers' deposited assets be stored in cold wallets.

Upbit has consistently maintained a cold wallet ratio of over 98%, well above this standard. The hot wallet has also been stably managed in the 1% range, recording the lowest level among domestic exchanges. In fact, according to data disclosed in June by Rep. Heo Young of the Democratic Party, the cold wallet custody ratios of major domestic exchanges at that time were around 82~90%, while Upbit's was the highest at 98.3%.

Even amid increased deposit and withdrawal demand due to recent rises in digital asset prices and expanded support for new trading, Upbit has steadfastly maintained its hot wallet ratio below 2%. As part of company-wide security enhancements, it has completed a reassessment and revamp of its wallet system, and plans to further reduce the hot wallet ratio to the 0% range in the future.

Oh Kyung-seok, CEO of Dunamu, said, "We are continuously striving to maintain the hot wallet ratio at the lowest level domestically," adding, "We will make the protection of customer assets the top priority in Upbit's operations and do our best to build a digital asset trading environment that can be used with confidence."