Why did Upbit and Bithumb just remove Litecoin from the list?
On June 8, 2022, South Korean digital currency exchange Upbit announcement that it would stop supporting Litecoin transactions.
The move comes after the MimbleWimble (MWEB) privacy feature was activated and brings the total number of digital currency exchanges that have removed Litecoin from the list to five, including major exchanges like Upbit and Bithumb.
— 8BTCnews (@btcinchina) June 8, 2022
Why are Upbit, Bithumb and others removing Litecoin from the list?
In its announcement, Upbit cited the Specific Financial Transaction Information Reporting and Use Act as the reason for Litecoin’s delisting. The law prohibits anonymous transactions. The exchange contacted the Litecoin Foundation for more information after raising concerns about the upgrade, and later stated the following:
We have decided to end transaction support for Litecoin (LTC) because it has been determined that the optional feature that does not expose transaction information included in this network upgrade matches the technology of anonymous transmission under the law on specific financial information.
The exchange will end support for LTC transactions on June 20. This will mean ending support for things like airdrops, wallet upgrades, and hard forks associated with Litecoin and automatically canceling all buy and sell orders on its trading platform.
What is MimbleWimble?
MimbleWimble is Litecoin’s long-awaited privacy update. It is named after a well-known spell from the Harry Potter series of stories. In it, the spell binds the language of the victims and prevents them from revealing specific information. At the end of the day, the goal of MimbleWimble is to make transaction information completely anonymous.
Just a day before Upbit’s announcement, Litecoin creator Charlie Lee talked about it on social media, discussing how it would improve Litecoin’s scalability and make it more fungible.
This issue has been fixed in v0.21.2.1. If your wallet has been affected, you can use “rescanblockchain 2265984” after the upgrade to recover the missing coins. https://t.co/ujM2jhJKfd
— David BurkettⓂ️🕸 (@DavidBurkett38) June 7, 2022
No more clueless anarchist utopian nonsense
It is unclear if Lee and others who supported MimbleWimble were aware of the radiation potential. However, they may have some explaining to do if exchanges in other major markets like the European Union remove Litecoin from the list to avoid running into similar regulations.
Again, we have a clear example of how the naïve idealism of people like Lee clashes with the reality of the law and the needs of regulated businesses. While Lee and his cronies focus on building untraceable electronic payment systems that would allow terrorists, drug lords and worse to operate without fear of getting caught, serious businesses like exchanges focus on the financial survival and profit making in increasingly regulated markets.
Litecoin holders should not be surprised to see similar delistings by other regulated exchanges. As major economic and political powers like the European Union and the United States grapple with how to regulate digital currencies and blockchain technology, key players like the SEC’s Gary Gensler are pledging to ending the “Wild West” era of industryit will become increasingly clear that currencies like Litecoin and Monero have no future but to act as underground railroads for cybercriminals.
Meanwhile, blockchains have pledged to work within the law, such as bitcoin sv, are seeing true enterprise adoption and interest from major tech players like IPv6 Forum founder Latif Ladid. Serious developers and investors in the industry should ask themselves which blockchains and digital currencies are most likely to survive and thrive in an increasingly regulated world? If the stocks of Upbit, Bithumb and others are good, Litecoin will not be on this list.
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