Major South Korean Crypto Exchanges Delist Litecoin

Major cryptocurrency exchanges in South Korea have removed Litecoin ( SLD ) weeks after reporting its privacy-focused MimbleWimble (MWEB)...

Major cryptocurrency exchanges in South Korea have removed Litecoin (SLD) weeks after reporting its privacy-focused MimbleWimble (MWEB) upgrade.

In an audience announcement On Wednesday, Upbit cited the Financial Transactions Specific Information Reporting and Use Act, which prohibits anonymous transactions, as the primary reason for ending support for LTC.

The delisting comes in light of the long-awaited MWEB upgrade that made LTC transactions private, hiding some of the key identifiers. The upgrade was released earlier this year, nearly two years after it was first proposed.

The crypto exchange contacted the Litecoin Foundation to understand the privacy-focused upgrade, and after careful consideration, the exchange decided to end support for LTC transactions. Exchange users have 30 days to withdraw their LTC funds. Upbit in its official report said:

“We have decided to end transaction support for Litecoin (LTC) because the optional feature that does not expose transaction information included in this network upgrade has been determined to be a technology of anonymous transmission under the law on specific financial information.”

According to a report by 8BTC, five major crypto exchanges, namely Upbit, Bithumb, Coinone, Korbit, and Gopax, have now removed LTC from their platform.

Upbit and other major crypto exchanges have issued a warning to investors the last week of May, informing them of the regulatory risks associated with confidential transactions.

Related: South Korea Steps Up Crypto Investigations and Regulations

South Korea has some of the strictest crypto regulations in the world, and the Specific Financial Information Law is one of them. Under this rule, crypto exchanges are required to implement strict know-your-customer and anti-money laundering policies, and anonymous transactions are prohibited.

LTC’s delisting was highly anticipated, especially after a stock exchange warning earlier this year. Korean exchanges have also removed several other privacy coins in the past.