Litecoin: a non-grata cryptocurrency in South Korea

The Crypto Hunt Continues – Besides the bear markets since the beginning of 2022, Litecoin (LTC) must now face regulatory problems. In effect, 5 crypto exchanges have decided to remove of their platform, facing the regulator pressure.

Litecoin becomes outlaw in South Korea

Upbit, Bithumb, Coinone, Korbit and Gopax announced the withdrawal next from Litecoin. These 5 major South Korean exchanges made this decision as a result of the upgrade Mimblewimble Extension Blocks. This network update was activated in the month of May 2022.

The project team referred to it as “fungibility enhancement technology”. Concretely, Mimblewimble Extension Blocks strengthens confidentiality transactions. Specifically, the amount of funds sent is known only to the sender and receiver.

However, this confidentiality would violate a legal provision South Korea on specific financial information.

In fact, this measure prohibited to exchanges the management of cryptocurrencies concealing records related to transfers. In other words, users of crypto platforms are not allowed to trade korean won for Litecoin.

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A Litecoin victim of Terra and questionable electoral promises?

South Korean stock exchanges have therefore chosen the path of caution, removing Litecoin from their platform. They most likely don’t want to incur the wrath of South Korean regulators, who put even more the pressure on exchanges after the collapse of the Terra ecosystem tokens.

And in the face of inconvenient regulators, crypto platforms and the cryptosphere in general cannot really rely on the executive. And for good reason: for the moment, the south korean president newly elected does not seem to wanting to get wet for the crypto ecosystem. He had, however, made promises in favor of the development of cryptocurrencies during the electoral campaign.

However, as soon as he came to power, he seemed to encounter difficulties in keeping promise on the taxation of cryptocurrencies.

The cryptosphere can then hardly determine the actual level of support it will get from the executive on other regulatory issues.

This long-awaited activation of Mimblewimble Extension Blocks will therefore have ultimately carried harm to the adoption of Litecoin ? Korean crypto exchanges are among the first in the industry to withdraw cryptocurrency. Thus, the LTC community should expect other platforms in other countries, facing the same pressure from regulators, to follow suit.

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