In a few weeks, users of the five major crypto exchanges in the country won't be able to carry out transactions in Litecoin (LTC) anymore.
On June 8, the five biggest South Korean cryptocurrency exchanges stated that they would delist Litecoin (LTC), following the previously fired up Mimblewimble (MWEB) upgrade. The news comes after both crypto exchanges Upbit and Bithumb issued a warning on Litecoin and firstly considered blacklisting the altcoin on May 23.
The platforms additionally made a reference to Korea's Act on the Reporting and Use of Specific Financial Transaction Information which dictates that crypto exchanges must adopt particular KYC and AML measures.
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According to the official announcement, 5 exchanges, including Upbit, Coinone, Gopax, Korbit, and Bithumb, have made a historic event in the crypto industry as they have thrown out LTC from their platforms.
On top of that, Upbit has stated that the support of the P2P cryptocurrency will end on June 20 and traders will have only 30 days to take out their Litecoin (LTC) funds.
The MWEB upgrade was launched at the beginning of the year to provide LTC network users the possibility to make their Litecoin-related operations confidential. Additionally, through a particular compression tech, MWEB is able to eliminate unnecessary transaction data from the network’s blocks.
Interestingly enough, after consulting with the Litecoin Foundation, Upbit thought that the best option would be to stop supporting Litecoin (LTC) transactions. It added:
“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.”
Litecoin (LTC), launched in 2011, is one of the earliest Bitcoin (BTC) rivals. It's considered the 18th largest cryptocurrency token by value with a market cap of more than $5 billion.
In other news, at the beginning of this year, one of the exchanges that delisted LTC dubbed Bithumb announced that it would only allow withdrawals from authorized wallets to comply with policy changes.