On June 8, 2022, South Korean digital foreign money trade Upbit announced that it will stop supporting Litecoin transactions.
The transfer comes after the activation of the privateness characteristic MimbleWimble (MWEB) and brings the full variety of digital currency exchanges which have delisted Litecoin to 5, together with main exchanges like Upbit and Bithumb.
— 8BTCnews (@btcinchina) June 8, 2022
Why are Upbit, Bithumb, and others delisting Litecoin?
In its announcement, Upbit cited the Act on Reporting and Use of Particular Monetary Transaction Data as its motive for delisting Litecoin. The Act prohibits nameless transactions. The trade reached out to the Litecoin Basis for extra data after expressing concerns about the upgrade, and subsequently stated the next:
We determined to terminate the transaction assist for Litecoin (LTC), because it was decided that the non-obligatory perform that doesn’t expose transaction data included on this community improve corresponds to nameless transmission know-how beneath the Particular Monetary Data Act.
The trade will finish LTC transaction assist on June 20. It is going to imply the cessation of assist for issues like airdrops, pockets upgrades, and arduous forks related to Litecoin and the automated cancelation of all purchase and promote orders on its buying and selling platform.
MimbleWimble is Litecoin’s long-awaited privateness improve. It’s named after a well known tongue-tying spell within the Harry Potter story sequence. In it, the spell ties victims’ tongues and stops them from revealing particular data. Finally, the goal of MimbleWimble is to make transaction data fully nameless.
Only a day earlier than Upbit’s announcement, Litecoin creator Charlie Lee talked it up on social media, talking of how it will improve Litecoin’s scalability and make it extra fungible.
This situation has been resolved in v0.21.2.1. In case your pockets was affected, you need to use “rescanblockchain 2265984” after upgrading to get better any lacking cash. https://t.co/ujM2jhJKfd
— David Burkett Ⓜ️🕸 (@DavidBurkett38) June 7, 2022
Extra clueless nonsense from anarchist utopians
Whether or not Lee and others who supported MimbleWimble had been conscious of the potential for delistings is unclear. Nonetheless, they could have some explaining to do if exchanges in different giant markets just like the European Union delist Litecoin to keep away from operating afoul of similar regulations.
But once more, we’ve got a transparent instance of how the naive idealism of individuals like Lee conflicts with the fact of the regulation and the wants of regulated companies. Whereas Lee and his acolytes are targeted on constructing untraceable digital money programs that might permit terrorists, drug kingpins, and worse to function with no concern of getting caught, critical companies like exchanges are targeted on surviving financially and making a revenue inside more and more regulated markets.
Litecoin holders shouldn’t be stunned to see comparable delistings by different regulated exchanges. As main financial and political powers just like the European Union and United States become familiar with methods to regulate digital currencies and blockchain know-how, with key gamers just like the SEC’s Gary Gensler vowing to end the ‘Wild West’ era of the industry, it can turn into more and more clear that currencies like Litecoin and Monero haven’t any future apart from to behave as underground railroads for cybercriminals.
In the meantime, blockchains dedicated to working throughout the regulation, reminiscent of Bitcoin SV, are seeing true enterprise adoption and curiosity from main tech gamers just like the IPv6 Discussion board’s Founder Latif Ladid. Severe builders and buyers within the trade ought to ask themselves which blockchains and digital currencies are almost definitely to outlive and thrive in an more and more regulated world? If the actions of Upbit, Bithumb, and others are something to go by, Litecoin received’t be on that listing.
Comply with CoinGeek’s Crypto Crime Cartel sequence, which delves into the stream of teams from BitMEX to Binance, Bitcoin.com, Blockstream, ShapeShift, Coinbase, Ripple,
Ethereum, FTX and Tether—who’ve co-opted the digital asset revolution and turned the trade right into a minefield for naïve (and even skilled) gamers available in the market.
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