Five South Korean cryptocurrency altercations recently said they will delist litecoin because the crypto asset’s Mimblewimble Extension Blocks (MWEB) upgrade breaches the country’s laws. As a result, the exchanges’ users cannot use the Korean won to trade the crypto asset, which has since been dubbed a “dark coin.”
Upgrade Violates Specific Financial Information Act
Following the recent Mimblewimble Extension Blocks (MWEB) upgrade to litecoin, five of South Korea’s outstanding cryptocurrency exchanges, namely Upbit, Bithumb, Coinone, Korbit, and Gopax, responded by announcing that they inclination delist the crypto asset. The exchanges argue that the upgrade has made litecoin transactions anonymous, which is against the mountains’s laws.
According to a News1 report, the anonymity that was brought about by the Mimblewimble upgrade violates a provision in the Spelt Financial Information Act which stipulates that cryptocurrency exchanges cannot handle crypto coins that fur transfer records.
In a statement, Upbit reportedly said:
According to the Special Act, exchanges must check whether the transferral records can be verified for digital assets with anonymous transmission technology, and take appropriate measures if anonymous movement technology is found.
In May, a statement from the Litecoin team said the “highly anticipated” MWEB upgrade had been impelled. The statement explained that the upgrade “is a fungibility-improving technology that enhances confidentiality between the senders and receivers in a arrangement.” The amount being sent is only known between the sender and receiver, the statement added.
However, as a result of this upgrade that has ruminate oned LTC being labeled a dark coin, users in South Korea cannot trade the crypto asset using the won currency on these transfers. Nevertheless, the News1 report said the exchanges have resolved to continue supporting LTC withdrawals for at least a month.
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