Litecoin has been delisted from Bithumb and Upbit, two South Korean cryptocurrency exchanges, due to changes made to the coin that allows for better transaction anonymity.
Bithumb and Upbit announced that they were discontinuing market support for Litecoin because its recently activated Mimblewimble Extension Blocks (MWEB) network upgrade clashes with South Korean anti-money laundering (AML) regulations.
Upbit alluded to a feature in Litecoin trading that “enables users to not expose transaction information,” sparking concerns that “anonymous transmission technology” will be added to the coin’s functioning. Upbit’s market support for Litecoin will end on June 20, and users will have one month to withdraw their cash from the exchange before July 20.
Bithumb is acting more quickly. The exchange stressed its commitment to “protect [its] users and to construct a transparent digital asset market.” in its delisting notice. On June 8, users will be unable to deposit Litecoin and will have until July 25 to fully withdraw their Litecoin from the exchange.
Reuters Shares a Behind-the-Scenes Glimpse of Binance
Binance’s activities have been the subject of some scrutiny, not just from the SEC. Reuters published a story on May 6 from an extensive investigation on the exchange’s role in fraudulent activities. Between 2017 and 2021, the exchange allegedly processed at least $2.35 billion in transactions from hackers, investment frauds, and narcotics sales, according to the investigation. During that time, it was also reported that Binance’s Know Your Customer (KYC) and Anti-Money Laundering (AML) checks were not up to par.
The report notably references the North Korean hacking group Lazarus’ participation in several of these hacks, as well as Binance’s shady dealings with Russian drug store Hydra. A Binance representative refuted all of the charges, saying:
“[The report is a] woefully misinformed op-ed that uses outdated information from 2019 and unverified personal attestations. The fact is that Binance has some of the strictest AML policies in the fintech industry and plays a significant leadership role in helping law enforcement deal with cyber and financial crime. Since the article ran, we have received an outpouring of support from partners in law enforcement across the globe.”
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