South Korean exchanges warn

Litecoin may no longer be welcome in South Korea

Following its recent update offering the possibility of anonymizing its transactions, Litecoin (LTC) finds itself targeted by two of the biggest South Korea cryptocurrency exchanges. The exchanges in question are Bithumb and Upbit.

These latter put forward a Korean law on the obligation to declare information during transactions. However, since the installation of the Mimblewimble technology in block 2 257 920, on May 19, it is now possible to make a transaction anonymous on the network.

In order to comply with the regulations, there is therefore a good chance that Bithumb and Upbit withdraw the asset from their respective platforms, following these warnings. Korbit and Coinone, the other two major platforms in South Korea, have not, a priori, yet given their position on Litecoin.

👉 To go further – Find our guide on Proof-of-Work (PoW)

The anonymity brought by Mimblewimble

The name of this technology is a nod to a spell from the Harry Potter universe and translates into French as the “Language of Lead” spell. This is a reference to this anonymous aspect of a blockchain integrating Mimblewimble. Indeed, from a blockchain explorer, a block appears to be one and the same transaction, without giving more details about the contents of the inputs and outputs.

In general, regulators and, by cause and effect, centralized platforms, tend to be hostile towards anonymous cryptocurrencies. Of course, the fetish argument of the fight against money laundering and the financing of terrorism is often invoked.

Faced with this pressure, exchanges may find themselves forced to withdraw this type of asset from trading. As Litecoin gradually slips back in the market cap rankings as time goes by, the project takes there a risky bet for its adoption.

👉 Also in the news – Terra: South Korean regulators launch emergency inspection of local platforms

Source: Bithumb, Upbit

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About the Author : Vincent Mayor

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I timidly discovered the world of blockchain at the end of 2018 during my quest for financial freedom. Initially invested moderately, it was only two years later that I took the gamble of betting everything on the movement that was taking shape then. I then dedicate 2021 to training myself better to acquire more knowledge and seriousness. As I often like to say: I still have a billion things to learn. And what I do know, I want to share with you.
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