Five South Korean Crypto Exchanges Respond To Litecoin MWEB Upgrade By Deleting The Coin

Five South Korean cryptocurrency exchanges recently said they would remove Litecoin from the list because the crypto asset’s Mimblewimble Extension Blocks (MWEB) upgrade violated the country’s laws. As a result, exchange users cannot use Korean Won to trade the crypto asset, which has since been dubbed the “dark coin.”

The upgrade violates the law on specific financial information

Following the recent upgrade of Mimblewimble (MWEB) extension blocks to litecoin, five of South Korea’s leading cryptocurrency exchanges, namely Upbit, Bithumb, Coinone, Korbit, and Gopax, responded by announcing that would remove the crypto asset from the list. The exchanges claim that the upgrade made Litecoin transactions anonymous, which is against the country’s laws.

According to a report from News1, the anonymity caused by the Mimblewimble upgrade violates a provision of the Specific Financial Reporting Act which states that cryptocurrency exchanges cannot handle cryptocurrencies that hide records of transfer.

Advertising

In a statement, Upbit reportedly said:

According to the special law, exchanges must check whether transmission records can be verified for digital assets with anonymous transmission technology and take appropriate action if anonymous transmission technology is found.

In May, a statement from the Litecoin team indicated that the “long-awaited” MWEB upgrade had been activated. The statement explained that the upgrade “is a fungibility-enhancing technology that enhances privacy between senders and receivers of a transaction.” The amount sent is only known between the sender and the recipient, the statement added.

However, following this upgrade which saw LTC being labeled as a dark coin, users in South Korea cannot trade the crypto asset using the currency earned on these exchanges. Nonetheless, News1’s report says exchanges have decided to continue supporting LTC withdrawals for at least a month.

What are your thoughts on this story? Let us know what you think in the comments section below.

terexe1

Terence Zimwara

Terence Zimwara is an award-winning journalist, author and writer in Zimbabwe. He has written extensively on the economic problems of some African countries as well as how digital currencies can provide Africans with an escape route.

Image credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. This is not a direct offer or the solicitation of an offer to buy or sell, or a recommendation or endorsement of any product, service or company. Bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

We wish to thank the author of this post for this incredible web content

Five South Korean Crypto Exchanges Respond To Litecoin MWEB Upgrade By Deleting The Coin


You can view our social media profiles here and other related pages herehttps://metfabtech.com/related-pages/