Litecoin in Disgrace: Crypto Exchanges are Delisting

 

Litecoin, once one of the five largest blockchains, has been subjected to new tests and pressure from South Korean cryptocurrency exchanges. In mid-May, MimbleWimble (MVEB) was updated, which increased the anonymity of transactions.

For crypto exchanges, this caused difficulty in following the law on conducting financial transactions.

MVEB pursues several goals at once: by combining multiple transactions into one, the record becomes like a set of random numbers; at the same time, the previous history is included in a truncated form, which increases the processing speed. In terms of the level of protection and degree of confidentiality, MVEB does not reach Monero or Zcash, however, this was enough for the largest crypto exchanges in South Korea to announce the end of support for Litecoin.

The use of MVEB makes it difficult for financial operators to carry out KYC (customer identification), AML (anti-money laundering) and a number of other policies required by local legislation. Upbit, Bithumb, Gopax, Korbit and Coinone have already announced the upcoming delisting and the end of Litecoin support. So, Bithumb will stop supporting transactions with the coin on June 22, and any transfers – on July 25.

Crypto regulation in South Korea is one of the strictest in the world. In 2019, under his pressure, crypto exchanges delisted anonymous coins, which led to their fall by an average of 25% within a month.

Litecoin is already trading 85% below the historical maximum reached in May 2021. Probably, the upcoming delisting will lead to a further drop in the cryptocurrency and its elimination from the TOP 20 rating by capitalization.