south Korean cryptocurrency exchanges Upbit and Bithumb have announced today that they will delist Litecoin as a result of its newly activated privacy features.
On May 20, Litecoin developers activated a privacy-preserving protocol on the coin, called MimbleWimble Extension Blocks (MWEB). This MimbleWimble update will allow Litecoin to conceal transactional data yet maintain its ability to process several transactions quickly.
Even so this causes an issue for Korean exchanges, which have to comply with strict laws on privacy coins.
Upbit stated that the reason for delisting Litecoin relates to Anti-Money Laundering (AML) regulations that needs exchanges to record data on cryptocurrency transactions. As reported by its delisting notice, given the nature of the Mimlewimble privacy protocol, the exchange will no longer support Litecoin transfers and the coin will be removed from the exchange.
Upbit will stop support for Litecoin on 20 June, and give users a month to withdraw their funds, per its announcement.
Similarly, Bithumb stated that it will stop all Litecoin deposits from June 8. It has given users until July 25 to withdraw their Litecoin, after which time withdrawals will no longer be supported.
“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 stated in its delisting notice.
As reported by cryptocurrency news site 8 BTC, 3 other exchanges including Coinone, and Korbit and Gopax have likewise notified users of removing Litecoin markets.
Litecoin is one of the top 20 cryptocurrency assets with a market capitalization of over $4 billion. The delisting of Litecoin on Korean exchanges comes a day after fintech giant paypal started allowing its users to transfer several well known cryptocurrency assets, including Litecoin.
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