The Mimblewinble upgrade has landed Litecoin in trouble as LTC got delisted from 2 major Korean exchanges. According to a report, the two exchanges decided to delist the token because of the network’s new privacy protocol. The new protocol was reported to have a significant privacy level such that users’ identities would be completely hidden during transactions.
Bithumb And Upbit Sets to Delist Litecoin
The two firms reportedly revealed their decisions right after the completion of Litecoin’s Latest upgrade. This is because the Mimblewimble upgrade is said to be against the regulations of anti-laundering agencies in the country.
As per the report, the bone of contention is the new anonymous transmission tech feature added to the network’s functionality. The new feature offers users the choice to appear anonymous during transactions.
Sequel to the exchanges’ disapproval of Litecoin’s new privacy protocol, both exchanges gave 1 month each to users to withdraw their funds. Upbit will stop supporting the network’s market by June 20. Furthermore, it is set to give its users till July 20th to withdraw all their funds before complete delisting.
However, Bithumb had already stopped supporting Litecoin’s market and it gave users till July 25th to withdraw their Litecoin funds. The two firms claimed they do this to protect their customers from scams and also to maintain a transparent crypto market.
Can This Cause A Chain Reaction
Many crypto analysts are speculating whether the actions of the two exchanges could cause a chain reaction. Litecoin is a famous crypto network with good community bases. It is listed in the majority of the world’s leading crypto exchanges like Binance.US, Coinbase, etc.
However, the current delisting crisis the network is facing from two popular Korean exchanges might cut deeper than expected. Analysts said it might affect the future of the coin on other cryptocurrency exchanges where it is listed.
Extreme Anonymity Aids Fraudulent Acts
Many crypto exchanges do not support coins that have advanced privacy features that strictly keep the identity of users. Examples of these privacy-centric coins are Monero, Zcash, etc
The issue with these coins and their anonymity feature is that they can easily encourage fraudulent acts. Scammers and hackers can easily loot funds without traces via these coins.
Recently, local news revealed that Binance was accused of playing a conduit role in a $2. 35 billion money laundering. Also, Monero was reported involved in the theft case. This is because the stolen funds were transacted in the form of Monero via the Binance platform. However, Binance has not responded to the report.