Five major South Korean exchanges announced their intention to delist Litecoin (LTC). The cryptocurrency recently implemented an update to improve its privacy and scalability features.
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As a result, Upbit, Bithumb, Korbit, Gopax, and Coinone will stop offering to their customers. The update made Litecoin incompatible with South Korean regulations.
In the official delisting announcement posted by Upbit, the platform claims that the following trading pairs will be unavailable today, June 8.th: LTC/KRW, LTC/BTC, and LTC/USDT. The exchange said that the main reason behind this decision is:
(…) It is assumed that the upgrade has been done with a select function that does not expose transaction information.
The decision is guided, the post continued, by South Korea’s Specific Financial Information Act. This regulation calls for exchange platforms to scrutinize transactions on the blockchain for “transparency”.
In this way, Upbit and other South Korean exchanges can verify that users or transactions do not violate the country’s anti-money laundering regulations. The rule also aims to prevent bad actors from obtaining money through illegal activities.
South Korean exchanges claim that the MimbleWimble update will provide the Litecoin network with the following capabilities:
(LTC) has scope to incorporate technology that renders these transfer records unrecognizable, so we decided to designate this as a significant issue. So far, no deposits have been made using the Mimblewimble function with Upbit, and we have no plans to reflect deposits in the future.
MimbleWimble and Litecoin’s new privacy features hit South Korean exchanges. However, privacy coins have been delisted from major trading platforms over the past two years.
Monero (XMR), Zcash (ZEC), and others have faced similar decisions taken by several exchanges around the world. MimbleWimble could highlight this possibility for LTC.
Litecoin unaffected by South Korean exchanges decision
At the time of writing, LTC price seems unaffected by recent developments. The cryptocurrency continues to move sideways and is trading at $62.
Large cryptocurrencies like bitcoin and ethereum follow the same path as they remain range bound and unable to break local resistance. Due to increased network activity only Cardano (ADA), and Chainlink (LINK), due to the roadmap on their stakes, are being cut off from the overall market.
research firm sentiment noted,
Crypto prices cut wildly in the early week of June, but the result has been largely no movement for Bitcoin and Ethereum. Altcoins, on the other hand, have bought ADA, LINK. have shown larger decoupling than each other with And hnt is performing well.
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Additional data from content indicators shows an increase in buy orders from retail investors, for shorter time frames. Large investors are selling in the current price action, but it is too early to tell whether this trend will continue in the coming days.