Major cryptocurrency exchanges in South Korea pulled Litecoin (LTC) from their platform weeks after they reportedly upgraded their privacy-focused MimbleWimble (MWEB) upgrade.
In a public announcement Wednesday, Upbit cited the Specific Financial Transaction Reporting and Use of Information Act, which prohibits anonymous transactions, as the main reason for LTC abandonment.
This withdrawal from the platforms comes after the highly anticipated upgrade of MWEB, which conducted LTC transactions in secret, by concealing some of the key identifiers. The upgrade was released earlier this year, almost two years after it was first proposed.
The cryptocurrency exchange approached the Litecoin Foundation to understand the privacy-oriented upgrade, and after careful consideration, the exchange decided to stop supporting LTC transactions. Exchange users have 30 days to withdraw their LTC funds. Upbit said in an official report:
“We have decided to discontinue transaction support for Litecoin (LTC) because the optional non-disclosure feature of transaction information contained in this network upgrade is definitely a transmission technology. No one will be anonymous under the law regarding certain financial information. »
According to a report from 8BTC, five major cryptocurrency exchanges namely Upbit, Bithumb, Coinone, Korbit and Gopax have now removed LTC from their platforms.
– 8BTCnews (@btcinchina) June 8, 2022
Five major #crypto exchanges in South Korea – Upbit, Bithumb, Coinone, Korbit and Gopax – have announced the removal of #Litecoin (LTC) from their platforms https://t.co/p1SdMr1Gu5. – 8BTCnews (@btcinchina) June 8, 2022
Upbit and other major cryptocurrency exchanges issued a warning to investors during the last week of May, informing them of the regulatory risks associated with secret transactions.
Read also: South Korea steps up cryptocurrency investigations and regulations
South Korea has one of the strictest crypto regulations in the world, and Specific Financial Information Law is one of them. Under this law, cryptocurrency exchanges are required to enforce strict customer notification and anti-money laundering policies, and anonymous transactions are prohibited.
The removal of LTC from platforms was highly anticipated, especially following a warning from exchanges earlier this year. Crypto-currency exchanges have in the past removed privacy-oriented crypto assets from their platforms.