Litecoin’s latest update, the Mimblewimble Extension Blocks (MWEB) network, has landed the cryptocurrency giant in soup as major exchanges in South Korea announced that they would be delisting the coin. This comes after the new privacy feature was added to the upgrade, granting more privacy to users during transactions.
After the upgrade, two prominent South Korean cryptocurrency exchanges, Upbit and Bithumb, have recently announced that they will delist Litecoin due to the new privacy feature. According to the exchanges, Litecoin’s Mimblewimble Extension Blocks (MWEB) network is in direct conflict with South Korea’s anti-money laundering (AML) guidelines and regulations. With this new feature, there is an option where users can decide not to disclose their information during trading. This has raised concerns that the coin’s functionality would add “anonymous transmission technology.”
Upbit said it would ban its market support for Litecoin on June 20. After the June 20 proposed date, users will be given an additional one month to withdraw their funds from the exchange, which means they will have until July 20. Bithumb, on the other hand, is giving its users a smaller time frame to protect users and ensure a transparent digital asset market.
The move by two of South Korea’s most powerful exchanges to delist Litecoin from their significant exchanges is causing concerns in the crypto space. Questions have been asked by LTC holders on other exchanges and in other countries regarding this move. Litecoin is available on almost all exchanges, including FTX US, Binance US, and Coinbase. However, the move by the South Korean exchanges could also impact the cryptocurrency’s future in other countries.
Cryptocurrencies haven’t found it easy with some privacy-centric tokens that utilize privacy techniques to allow users to preserve their anonymity during transactions. There are fears that these coins, such as Zcash and Monero, could facilitate illegal activities due to their anonymity. It can also allow scammers and hackers to launder funds easily. Recently, Reuters published a report alleging that Binance and Monero participated in illegal crypto transactions, but Binance rubbished the report.
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