Major cryptocurrency exchanges in South Korea delisted Litecoin (LTC) weeks after flagging its privacy-focused MimbleWimble (MWEB) update.

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In public ad On Wednesday, Upbit cited the Reporting and Use of Specific Financial Transaction Information Act, which prohibits anonymous transactions, as the main reason for ending support for LTC.

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The delisting comes in light of the long-awaited MWEB update, which made LTC transactions private by hiding some key identifiers. The update was released earlier this year, almost two years after it was first offered.

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The cryptocurrency exchange reached out to the Litecoin Foundation to inquire about the privacy-focused update, and after careful consideration, the exchange has decided to stop supporting LTC transactions. Exchange users have 30 days to withdraw their LTC funds. Upbit in their official report said:

“We have decided to discontinue transaction support for Litecoin (LTC) because the optional feature that does not disclose transaction information included in this network update has been determined to be compliant with anonymous transfer technology under the Specific Financial Information Act.”

According to the 8BTC report, five major crypto exchanges namely Upbit, Bithumb, Coinone, Korbit and Gopax have removed LTC from their platform.

In the last week of May, Upbit and other major crypto exchanges issued a warning to investors informing them of the regulatory risks associated with confidential transactions.

South Korea ramps up investigation and regulation of cryptocurrencies

South Korea has some of the strictest cryptocurrency regulations in the world, and the Special Financial Information Law is one of them. In accordance with the said rule, crypto exchanges are required to comply with a policy of strict knowledge of their customers and anti-money laundering, and anonymous transactions are prohibited.

The delisting of LTC was long overdue, especially after the warning from exchanges earlier this year. Several other privacy coins have been delisted by Korean exchanges in the past.