Report: Five South Korean crypto exchanges have delisted Litecoin as a result of the MWEB upgrade
Five South Korean cryptocurrency exchanges have announced that litecoin will be delisted due to the crypto asset's Mimblewimble Extension Blocks (MWEB) update, which is illegal in the nation. As a result, customers of the exchanges are unable to trade the crypto asset, which has now been dubbed a "dark currency."
Five of South Korea's main cryptocurrency exchanges, including Upbit, Bithumb, Coinone, Korbit, and Gopax, responded to the recent Mimblewimble Extension Blocks (MWEB) update to litecoin by declaring that they will delist the crypto asset. The exchanges claim that the update has rendered litecoin transactions anonymous, which they claim is against the law in their nation.
According to a local media, the Mimblewimble upgrade's anonymity breaches a clause of the Specific Financial Information Act that prohibits cryptocurrency exchanges from dealing with cryptocurrencies that mask transfer records.
According to the Special Act, exchanges must investigate whether transmission records for digital assets can be confirmed using anonymous transmission technology, and take suitable steps if anonymous transmission technology is discovered.
The "much-awaited" MWEB update was triggered, according to a message from the Litecoin team in May. The update "is a fungibility-improving technology that promotes secrecy between the senders and recipients in a transaction," according to the announcement. The sender and receiver are the only ones who know the amount being sent, according to the statement.
However, users in South Korea are unable to trade the crypto asset using the won currency as a result of this update, which has designated LTC as a black coin. Nonetheless, according to a local media article, the exchanges have agreed to facilitate LTC withdrawals for at least another month.