Upbit and Bithumb, two South Korean crypto platforms, have decided to delist Litecoin (LTC) after the Mimblewimble update which promises greater privacy in transactions. This is because it does not comply with South Korean regulations.
Litecoin to be removed from two South Korean crypto platforms
Litecoin (LTC) is to be delisted from Bithumb and Upbit, two South Korean crypto platforms. The latter cite 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 capitalisation on their platforms, meaning 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 when trading.
The platforms are still offering a short delay for 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 Bithumb’s side, the timeline is much faster. On its blog, the South Korean platform stressed its responsibility to “protect its users and build a transparent digital asset market”.
It is for these reasons that 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 level of confidentiality of transactions is questioned by South Korean anti-money laundering regulations.
In other countries and particularly in the US, 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 historic cryptocurrency
Litecoin has long been compared to Bitcoin (BTC), as the two cryptos have many similarities. It first appeared in 2011, so it is a historical cryptocurrency.
11 years later, it is still in the top 20 largest cryptocurrencies. It was even the 3rd largest capitalisation in 2017.
It was also one of the first cryptos available on Robinhood when it launched its services in 2018.
The high level of transaction privacy following the upgrade and the drastic measures taken by South Korean exchanges could cast doubt on the future of the crypto.
Litecoin is down -56% since the beginning of the year, unlike Bitcoin which is down “only” -32%. But for the moment, the impact of the measures taken by South Korean platforms is not significant.
