Crypto exchange Bithumb may delist Litecoin

After the network upgrade, the asset became more private and no longer complies with the regulators’ rules

24.05.2022 - 06:40

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What’s new? South Korean exchange Bithumb has announced the possible delisting of Litecoin (LTC). In a statement, the exchange’s representatives wrote that after the MimbleWimble Extension Blocks (MWEB) upgrade, transactions on the network became more private. Because of this, the coin is no longer compliant with the regulators’ rules, particularly KYC (“know your customer”) and KYT (“know your transaction”).

Bithumb’s statement

What is known about MWEB? It is a protocol with a Proof-of-Work (PoW) consensus algorithm that allows transaction data to be hidden. It also has extensive scalability capabilities. MWEB was created in July 2016 by a group of anonymous developers. An upgrade to the Litecoin mainnet was launched on May 20, 2022.

What is Litecoin? It is a fork of the Bitcoin network, launched in October 2011. The protocol is used for small everyday transactions. Transfers on the network are made with almost zero fees. The network has the native token of the same name with the ticker symbol LTC, which is a “lightweight” version of bitcoin.

What happened before? Representatives of the largest South Korean crypto exchange Upbit have also reported that they are studying the MWEB upgrade on the Litecoin network. Based on the results of the study, the platform may delist the asset if it fails to meet transparency requirements.

According to research by Brand Analytics, Litecoin ranks third in popularity among Russian crypto users. Experts analyzed a sample of 2,4 billion social media posts, with Litecoin appearing in them 424 000 times.

Many large companies have already started accepting Litecoin as a means of payment. These include Gucci, a designer clothing brand, Taylor Travel Management Group, a Dutch travel agent, and Michele Franzese Moda, an Italian retailer.

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