5 Crypto Exchanges Delist Litecoin Due To New Privacy Features• June 12, 2022 10:04 pm • Comments
So far, it has been reported that 5 South Korean crypto exchanges have decided to delist Litecoin as a result of the token’s recent MWEB upgrade.
The reasoning is that this MWEB upgrade violates the country’s laws as it would essentially Litecoin transactions anonymous.
The five exchanges that have delisted Litecoin so far are Upbit, Bithumb, Coinone, Korbit, and Gopax which make up sizeable amount of trading volume for the digital asset.
Lots of governments and regulatory entities seem to be uneasy about the fact that there can be a blockchain network that allows transactions to be anonymous as there has been a lot of debate about this topic in the past in the United States as well.
Crypto media that is treating exchanges which delist #litecoin favourably are doing a great disservice to the basic freedoms we enjoy today. Privacy is a human right. It is absolutely essential for good money. $Ltc https://t.co/Qn77DXBhyu
— Chris on Crypto (@ChrisOnCrypto1) June 9, 2022
The exchanges argue that the upgrade has made litecoin transactions anonymous, which is against the country’s laws.
According to a News1 report, the anonymity that was brought about by the Mimblewimble upgrade violates a provision in the Specific Financial Information Act which stipulates that cryptocurrency exchanges cannot handle crypto coins that hide transfer records.
In a statement, Upbit reportedly said:
According to the Special Act, exchanges must check whether the transmission records can be verified for digital assets with anonymous transmission technology, and take appropriate measures if anonymous transmission technology is found.
The MWEB upgrade was a highly anticipated upgrade that the Litecoin community had been waiting for as it would enhance the confidentiality of its users and also improved overall blockchain technical performance so that the network can scale without any issues.
However, it seems that there is a thing as being “too confidential” where the token gets in trouble with local authorities and being labeled as a “dark” coin.
With that being said, LTC investors who hold assets on these exchanges can still transfer their assets to an external source and there are still major exchanges that still support LTC.
Whether or not this type of regulatory enforcement will continue for other crypto projects is still unknown.
Bithumb and Upbit will delist Litecoin due to new privacy features. Lets fight for privacy 💪.$PRCYhttps://t.co/dVuSqsSttc
— Crypto Pjoitr (@CPjoitr) June 9, 2022
Upbit and other major crypto exchanges have issued a warning for investors in the last week of May, advising them about the regulatory risks associated with confidential transactions.
South Korea has some of the most stringent crypto regulations worldwide, and the Specific Financial Information Act is one of them.
Under the said rule, crypto exchanges are required to enforce strict Know Your Customer and Anti-Money Laundering policies, and anonymous transactions are prohibited.
The delisting of LTC was highly anticipated especially after a warning by exchanges earlier this year. Korean exchanges have delisted several other privacy coins in the past as well.
Many investors are interested in what the upcoming regulations in the United States may include and if it will take the same approach regarding privacy.
#Litecoin has dropped by around 5% since South Korean exchanges announced it will delist the cryptocurrency due to its latest upgrade.
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