Due to severe KYC and AML requirements imposed by South Korean crypto rules, prominent crypto exchanges have previously delisted privacy coins.
Litecoin has been removed from major South Korean cryptocurrency exchanges just weeks after they announced the privacy-focused MimbleWimble (MWEB) upgrade.
In a statement released to the public on Wednesday, Upbit stated that the primary justification for discontinuing support for LTC was the Act on the Reporting and Use of Specific Financial Transaction Information, which forbids anonymous transactions.
In light of the eagerly anticipated MWEB upgrade, which turned LTC transactions private and masked some of the important identifiers, the delisting was made. Almost two years after its first proposal, the upgrade was made available earlier this year.
To further comprehend the privacy-focused improvement, the cryptocurrency exchange contacted the Litecoin Foundation. Following a careful examination, the exchange decided to stop supporting LTC transactions. Users of the exchange have 30 days to withdraw their LTC balances.
Five significant cryptocurrency exchanges, notably Upbit, Bithumb, Coinone, Korbit, and Gopax, have reportedly delisted LTC from their platforms, according to a report from the 8BTC.
In the final week of May, Upbit and other significant cryptocurrency exchanges warned investors about the regulatory dangers related to private transactions.
The Specific Financial Information Act is one of South Korea’s most strict cryptocurrency rules. The aforementioned regulation requires cryptocurrency exchanges to have rigorous Know Your Customer and Anti-Money Laundering standards, and it forbids anonymous transactions.
LTC’s delisting was eagerly awaited, especially following an exchange warning earlier this year. In the past, Korean exchanges have also delisted some other privacy coins.
