Upbit and Bithumb, two South Korean crypto platforms, have decided to delist Litecoin (LTC) after the Mimblewimble update that promises greater privacy in transactions. This one is indeed not compliant with South Korean regulations.
Litecoin to be removed from two South Korean crypto platforms
The cryptocurrency Litecoin (LTC) is going to be delisted from Bithumb and Upbit, two South Korean crypto platforms. The latter are citing changes to the crypto that allow for greater privacy during transactions.
Bithumb and Upbit are ceasing to list the second-largest cryptocurrency in terms of capitalization on their platforms, which means that users will no longer be able to buy, sell or trade them.
The fault lies with the updated Mimblewimble Extension Blocks (MWEB) network, which provides greater discretion during transactions.
The platforms are still offering a short delay to users to sell their cryptocurrencies. Regarding Upbit, the exchange says that the Litecoin market will be closed on June 20 and states that its users will have one month to withdraw their funds before July 20.
On the side of Bithumb, the timelines are much faster. On its blog, the South Korean platform stressed its responsibility to “protect its users and build a transparent digital asset market.”
For these reasons, it will prevent its users from depositing Litecoin on their wallets as of June 8 and will give them until July 25 to completely remove their Litecoin from the platform.
Litecoin no longer complies with South Korean laws
This MWEB update was already raising questions a few weeks ago about its compliance in South Korea. Indeed, the high confidentiality of transactions is questioned by South Korean anti-money laundering regulations.
In other countries and particularly in the United States, Litecoin is still available on most major cryptocurrency platforms, including Coinbase, FTX US and Binance US.
Historically, crypto platforms have never been very picky about crypto currencies using advanced privacy techniques that allow users to maintain their anonymity. The most widely used crypto confidants today are Zcash and Monero. They are worth several billion dollars.
A historical crypto-currency
Litecoin has long been compared to Bitcoin (BTC), since both crypto have many similarities. It first appeared in 2011, so it is a historical crypto-currency.
11 years later, it is still in the top 20 largest cryptocurrencies. It was even the 3rd largest capitalization in 2017.
It was also one of the first cryptos available on Robinhood when it launched its services in 2018.
The high privacy of transactions following the upgrade and the drastic measures taken by South Korean exchanges might cast doubt on the future of the crypto.
Litecoin is down -56% since the beginning of the year, in contrast to Bitcoin which is down “only” -32%. But for now, the impact of the measures taken by South Korean platforms is not significant.