Do you keep track of blockchain technology news? Do you have any idea about cryptocurrency regulation news in different countries? In South Korea, crypto regulations are very stringent that enforce some strict measures like KYC (Know Your Customer) and AML (Anti-Money Laundering policies) guidelines. Furthermore, if certain cryptos cannot do not follow the guidelines, the exchange platform delists such coins as well.
The Problem:
The five exchanges – Bithumb, Upbit, Gopax, Korbit, and Coinone have recently announced their decision to delist Litecoin (LTC) following their MimbleWimble Extension Blocks upgrade. But why? It is because this upgrade would make all Litecoin transactions anonymous which goes against the country’s crypto policies. The News1 report also said that this anonymity in transactions brought about by MimbleWimble would violate the Specific Financial Information Act.
What the Exchanges Are Planning to Do:
Upbit said that it would allow Bitcoin transaction support up till June 20. The people would also be allowed to make withdrawals till July 20. This announcement led to a drop in Litecoin trading volume by 11%. Similar announcements were also made by the other 4 exchange platforms in Korea.
This upgrade has been a much-anticipated one. For the past two years, people have been waiting for this upgrade as it would hide the identity of users and make every transaction private. The transaction would remain a private act between the sender and the receiver.
These exchange platforms have given a time limit of 30 days for LTC withdrawals. The confidential nature of the transaction and regulatory risks involved in it make Litecoin a dark coin in Korea.
