Why Major South Korean Crypto Exchanges Delist Litecoin?
South Korean crypto regulations demand exchanges to follow tight KYC and AML requirements, and major crypto exchanges have already delisted litecoin.
Litecoin (LTC) has been delisted from major cryptocurrency exchanges in South Korea, only weeks after the privacy-focused MimbleWimble (MWEB) update was announced.
Upbit exchange cited the Act on the Reporting and Use of Specific Financial Transaction Information, which restricts anonymous transactions, as the primary reason for halting support for LTC in a public announcement on Wednesday.
The delisting follows the much-anticipated MWEB update, which made LTC transactions private and hid several crucial identifiers. The improvement was provided earlier this year, roughly two years after the proposal was initially made.
The crypto exchange contacted the Litecoin Foundation to learn more about the privacy-focused improvement, and after a thorough investigation, the exchange decided to discontinue service for LTC transactions. Users have 30 days to withdraw their LTC funds from the exchange. According to Upbit’s official report:
“We decided to terminate the transaction support for Litecoin (LTC), as it was determined that the optional function that does not expose transaction information included in this network upgrade corresponds to an anonymous transmission technology under the Specific Financial Information Act.”
Five major crypto exchanges, including Upbit, Bithumb, Coinone, Korbit, and Gopax, have delisted LTC from their platforms, according to a report by 8BTC.
In the last week of May, Upbit and other large crypto exchanges issued a notice to investors, alerting them of the regulatory risks connected with secret transactions.
The Specific Financial Information Act in South Korea is one of the most rigorous crypto legislation in the world. Crypto exchanges must follow strict know your customer and anti-money laundering measures as a result of the legislation, and anonymous transactions are forbidden.
LTC’s delisting was widely anticipated, especially after exchanges issued a warning earlier this year. Several other privacy currencies have been delisted by Korean exchanges in the past.
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