Five South Korean cryptocurrency exchanges recently announced that they will delist Litecoin because the Mimblewimble Extension Blocks (MWEB) upgrade of the crypto asset violates the laws of the country. As a result, exchange users cannot use the Korean won to trade the crypto asset, which has since been referred to as the “dark coin.”
The update violates the law on specific financial information
Following the recent upgrade of Mimblewimble Extension Blocks (MWEB) to litecoin, five major South Korean cryptocurrency exchanges namely Upbit, Bithumb, Coinone, Korbit and Gopax responded by delisting the crypto asset. The exchanges claim that the update made litecoin transactions anonymous, which is against the laws of the country.
According to News1 reportThe anonymity provided by the Mimblewimble update violates a provision in the Special Financial Information Act that prohibits cryptocurrency exchanges from handling cryptocoins that obscure transfer records.
Upbit’s statement reportedly states:
Under the Special Law, exchanges are required to check whether digital asset transfer records can be verified using anonymous transfer technology and take appropriate action if anonymous transfer technology is found.
In May statement from the Litecoin team said that the “long-awaited” MWEB update has been activated. The statement explains that the update “is a fungibility-enhancing technology that enhances privacy between senders and recipients in a transaction.” The amount to be sent is known only between the sender and the recipient, the statement said.
However, as a result of this modernization, which saw LTC being labeled as a dark coin, users in South Korea cannot trade the crypto asset using the won currency on these exchanges. However, the News1 report states that the exchanges have decided to continue supporting LTC withdrawal for at least a month.
What do you think of this story? Let us know what you think in the comments section below.
Denial of responsibilityA: This article is for informational purposes only. This is not a direct offer or solicitation to buy or sell, nor is it a recommendation or endorsement of any products, services or companies. Bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the company nor the author is directly or indirectly liable for any damage or loss caused or alleged to be caused by the use of or reliance on any content, goods or services mentioned in this article.
Credit : news.bitcoin.com