To avoid violating anti-money-laundering legislation in South Korea, Litecoin (LTC) has been removed from South Korean crypto exchanges because of its Mimblewimble Extension Blocks (MWEB) update, which enabled the token to be transmitted anonymously.
South Korean cryptocurrency exchanges Upbit, Bithumb, Coinone, Korbit, and Gopax have declared that they would remove LTC from their services. For South Korean investors, Litecoin trading will no longer be possible.
Exchanges that exclusively deal in token-to-token transactions like Foblgate and Coredax have classified Litecoin to be a “dangerous investment,” which might eventually lead to its delisting from their platforms.
More privacy is now available for LTC users thanks to MWEB, the most recent update to the Litecoin blockchain, which allows users to trade LTC on “Extension Blocks,” which hide transaction addresses and amounts.
Strict anti-money laundering restrictions implemented in the South Korean crypto market last year make the MWEB upgrade incompatible.
In order to facilitate cash-to-crypto transfers, the rule mandates that exchanges work with local banks so that customers may trade using real-name accounts.
At the time of writing, Litecoin was trading at US$61.17, down around 5% since South Korean exchanges confirmed the delisting.
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