Five major South Korean exchanges announced their intention to delist Litecoin (LTC). The cryptocurrency recently implemented an update to improve its privacy and scalability features.
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As a result, Upbit, Bithumb, Korbit, Gopax, and Coinone will stop offering to their customers. The update has made Litecoin incompatible with South Korean regulations.
In Upbit’s official delisting announcement, the platform claims that the following trading pairs will be unavailable starting today, June 8: LTC/KRW, LTC/BTC, and LTC/USDT. The main reason for this decision, according to the exchange, is:
(…) It is assumed that the upgrade was performed using a selection function that does not disclose any transaction information.
The decision is guided by South Korea’s Specific Financial Information Law, the post added. This regulation requires exchange platforms to check the transaction of a blockchain for “transparency”.
This allows Upbit and other South Korean exchanges to verify that the user or transaction is not violating the country’s anti-money laundering regulations. The rule is also designed to prevent bad actors from getting funds through illegal activities.
South Korean exchanges claim that the MimbleWimble update will bring these capabilities to the Litecoin network:
(LTC) has room to see the addition of technology that will render these transmission records non-identifiable, so we have chosen to mark this as a significant issue. No deposits have been made through the Mimblewimble feature with Upbit to date, and we do not plan to make any deposits in the future either.
MimbleWimble and Litecoin’s new privacy features appear to be impacting South Korean exchanges. However, privacy coins have been supplanted by the major trading platforms in the last two years.
Monero (XMR), Zcash (ZEC) and others suffered from a similar decision made by many exchanges around the world. The MimbleWimble could unlock that opportunity for LTC.
Litecoin unaffected by South Korean exchange’s decision
At the time of writing, LTC’s price appears to be unaffected by recent developments. The cryptocurrency continues to move sideways, trading at $62.
LTC is moving sideways on the 4 hour chart. Source: LTCUSD trade view
Major cryptocurrencies, such as Bitcoin and Ethereum, continue on the same path as they remain range bound and unable to break local resistance. Only Cardano (ADA) appear to be decoupling from the broader market due to a spike in network activity and Chainlink (LINK) due to its roadmap to staking.
Research firm Santiment found:
Crypto prices plummeted wildly in the opening week of June, but the result was mostly no movement for Bitcoin and Ethereum. Altcoins, on the other hand, have shown major decouplings from each other, with ADA, LINK and HNT good performance.
Related Reading | Litecoin drops 87% in trading volume in the first quarter of 2022
Additional data from material indicators for short periods record an increase in purchase orders from retail investors. Larger investors appear to be selling into the current price action, but it’s too early to tell if this trend will continue in the coming days.
Retail (yellow on chart) is buying while other investors are selling (red, purple, and green on chart). Source: Material Indicators
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