Bithumb and Upbit announced in open notices that they will cease trading Litecoins (LTC) on Korean crypto exchanges. Upbit will cease trading pairs with Litecoin from June 20th, and users have one month to withdraw the asset. As of June 8, Bithumb had stopped accepting LTC deposits. The exchange also allows users to withdraw LTC funds until July 25th.
Korea: Litecoin MimbleWimble Edition delisted
According to the companies, the MimbleWimble Extension Blocks upgrade is not compliant with South Korean AML regulations (anti-money laundering). Three other South Korean crypto exchanges joined them: Korbit, Coinone, and Gopax. The five platforms announced their delisting at the same time in unprecedented coordination by the country’s crypto exchange industry.
Each company issued similar delisting announcements. It is not surprising that South Korean regulators have warned about MWEB from before it was released. Privacy coins Monero and Zcash (ZEC), have been taken out of the Asian country.
Reportedly, though, Litecoin’s delisting is a matter of collective industry action to satisfy the government. Lawmakers summoned the five exchanges in an attempt to find out why they had not coordinated to delist Terra Luna. Litecoin was the first crypto to be delisted by the joint committee.
Litecoin has been promoting the new privacy features in MWEB fork since a while. It protects your privacy and offers performance improvements to enhance its value proposition as a faster, cheaper Bitcoin (BTC).
The world’s largest crypto exchange – Binance – also weighed in on the matter, indicating that it will cease supporting withdrawals and deposits of Litecoin transactions wanting to employ the MWEB feature.
Outlook Thursday: Market Cap, Price of Litecoin, and Outlook
According to CoinMarketCap data today, Litecoin’s total market capitalization is $3 billion. Altcoin has also been affected by the negative price movements in crypto markets, with a 15% drop on the day. LTC has also fallen by approximately 50% since the last month, when it was at $80.
The asset’s peak value was $260 in November 2013. It has lost 83% since then.
It’s a proof-of-work consensus mechanism, Bitcoin-fork blockchain, that offers some feature tradeoffs against Bitcoin to users. The number of LTC addresses and transactions and the hashrate continue to increase, suggesting it’s a healthy blockchain.
Getting delisted in South Korea loses the coin some liquidity there, but that’s a tradeoff the Litecoin community has made for its blockchain values. Additionally, the new privacy features of MWEB are a real addition to the crypto and could bring in new users.
Litecoin supporters could also see the delistings of MimbleWimble as marketing. The delistings not only attract attention from the crypto community but also highlight the seriousness and importance of privacy solutions MimbleWimble provides for LTC users. They work. They’re banned in Korea.