As you may know, Litecoin was an early bitcoin spinoff or altcoin, starting in October 2011. On May 20, Litecoin was upgraded to add privacy features. The technology was planned to enhance confidentiality between the two parties in a transaction. Contrary to its initial purpose, the token is being removed from major Korean crypto exchanges due to Korean AML laws.
South Korean major crypto exchanges like Upbit and Bithumb have announced that they will delist Litecoin because of its newly activated privacy features which seemed to have been brought up for higher security purposes. Upbit, the cKorean crypto exchange, has stated that the reason for delisting Litecoin relates to Anti-Money Laundering (AML) rules that require exchanges to record data on crypto transactions. AML rules are those set by individual and government orgazination to tackle actions of laundering illicitly obtained funds by criminal or terrorist organizations.
The good news for the investors, however, is that Upbit will give users a month to withdraw their funds, per its announcement by June 20.
Similarly, Bithumb has also stated preventing all Litecoin deposits by June 8, giving users an opportunity to withdraw their Litecoin before being lost.
It’s been said that the newly activated Mimblewimble Extension Blocks (MWEB) network upgrade conflicts with South Korean anti-money laundering (AML) regulation, is what has caused these great crypto exchanges to delist Litecoin. Upbit has called the plan “anonymous transmission technology” which will put the future of the asset under a cloud.
In the U.S, Litecoin is available on most major cryptocurrency exchanges, including Coinbase, FTX US, and Binance US. In addition, back in 2018 users were able to buy and sell Litecoin for the first time on Robinhood, before South Korean exchanges cast doubts on the future of the token.
Litecoin is one of the top 20 crypto assets with a market cap of over $4 billion and Litecoin price holding at 61.368357, at the time of writing.