Major Korean exchanges delist Litecoin (LTC)

Upbit and Bithumb, two South Korean cryptocurrency exchanges, said today that they will delist Litecoin (LTC) due to its newly active privacy features.

Litecoin | Image: Forbes

On May 20, Litecoin developers enabled a privacy-preserving technology known as MimbleWimble Extension Blocks on the coin (MWEB). This MimbleWimble upgrade will allow Litecoin to disguise transactional data while still processing a large number of transactions quickly.

However, this creates a problem for Korean exchanges, who must adhere to rigorous privacy coin rules.

According to Upbit, the reason for the delisting of Litecoin is due to Anti-Money Laundering (AML) regulations that compel exchanges to record data on crypto transactions.

Due to the nature of the Mimlewimble privacy protocol, the exchange will no longer handle Litecoin transfers, and the coin will be withdrawn from the exchange, according to its delisting notice.

According to the notice, Upbit will discontinue support for Litecoin on June 20 and will offer customers a month to withdraw their cash.

Similarly, Bithumb has said that all Litecoin deposits would be suspended from June 8. Users have till July 25 to withdraw their Litecoin before withdrawals are no longer supported.

The exchange said in its delisting notice,

"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."

According to the local reports, three more exchanges, Coinone, Korbit, and Gopax, have also notified customers of the removal of Litecoin markets.