Litecoin was enhanced with privacy features on May 20, resulting in the token being delisted from major Korean crypto exchanges due to AML regulations.
According to Upbit and Bithumb, two South Korean cryptocurrency exchanges, Litecoin will be delisted from their platforms due to its new active privacy features.
On May 20, Litecoin developers launched the MimbleWimble Extension Blocks (MWEB). This privacy-preserving mechanism enables Litecoin to hide transactional data yet perform a large number of transactions rapidly.
This poses a problem for Korean exchanges that must adhere to stringent privacy currency rules.
Upbit reported that Litecoin was delisted due to Anti-Money Laundering (AML) regulations requiring exchanges to record data on cryptocurrency transactions. Due to the nature of the Mimlewimble protocol, the exchange will no longer handle Litecoin transactions, and the coin will be delisted.
According to its announcement, Upbit will stop supporting Litecoin on June 20 and offer customers a month to withdraw their cash.
Similarly, Bithumb announced on June 8 that it would no longer accept Litecoin deposits. Users have until July 25 to withdraw their Litecoin, after which withdrawals will no longer be permitted.
“Bithumb decides to terminate transaction support for virtual assets in accordance with the revised Act on Reporting and Use of Specific Financial Transaction Information, in compliance with regulations on virtual assets with high anonymity,” the exchange said in its delisting notice.
According to a local Korean news source – Bimeiti, other crypto exchanges also delisted Litecoin. For instance, Coinone, Korbit, and Gopax have informed customers that they are eliminating Litecoin markets.
#LTC #Litecoin #MimbleWimble #ltcdelisting #delisting
萊特幣(LTC)的 MimbleWimble 升級會成為LTC退市末日嗎? https://t.co/URFl4zDjHO— 幣媒體新聞 (Bimeiti News) (@Bimeiti) June 9, 2022
Litecoin is among the top twenty cryptocurrencies with a market capitalisation of over $4 billion. The delisting of Litecoin on Korean exchanges occurred a day after PayPal began enabling its users to transfer Litecoin and other prominent cryptocurrencies.