Five South Korean cryptocurrency exchanges recently announced that their Mimblewimble Extension Blocks (MWEB) upgrade of crypto assets violated national law, and therefore, Litecoin The exchanges announced that they are delisting the crypto asset. As a result, users of the exchange cannot trade the crypto asset, which has since been named “Darkcoin,” using South Korean won.
The upgrade violates the Specific Financial Information Protection Law
Following the recent Mimblewimble Extension Blocks (MWEB) upgrade of Litecoin, five of South Korea’s major cryptocurrency exchanges, namely Upbit, Bithumb, Coinone, Korbit, and Gopax, listed their crypto assets reacted by announcing that they would be delisting their crypto assets. The exchanges claim that the upgrade anonymizes Litecoin transactions, which they claim is against the country’s laws.
News1reportsthat the anonymity brought about by the Mimblewimble upgrade violates provisions of the Specific Financial Information Act, which stipulates that cryptocurrency exchanges cannot handle cryptocoins that hide transfer records.
In a statement, Upbit reportedly said.
According to the FIEA, exchanges must check digital assets that use anonymous transmission technology to see if transmission records can be verified, and must take appropriate measures if anonymous transmission technology is discovered.
In May, astatementfrom the Litecoin team stated that the “long-awaited” MWEB upgrade had been launched. The statement described the upgrade as “a fungibility improvement technology that enhances confidentiality between the sender and receiver of a transaction. The amount sent can only be known between the sender and the recipient, the statement added.
However, as a result of this upgrade,was labeled a dark coin; LTCwas labeled a dark coin and Korean users cannot trade crypto assets using won currency on these exchanges They are not allowed to trade crypto assets using Won currency on these exchanges. Nonetheless, News1 reports that the exchanges resolved to continue supportingLTCwithdrawals for at least one month, stating.
Image credits: Shutterstock, Pixabay, Wiki Commons
