That's how KT controllers work, but like many others, they will get the speed from a hall sensor if you don't have a motor with internal speed sensor or an external speed sensor.If you get your speed from the Hall sensors, it can't show the correct speed beyond the set speed limit because the rotor won't spin faster than the set speed limit. When the bike travels faster than set speed limit, the clutch inside the motor disengaged, that explains why your lcd shows the speed limit.
To have the correct speed display, the LCD must get the signal from a separate speed sensor, which is most often installed inside the motor housing and its magnet glued to the motor cover. The same notor cable carries also the speed signal. That simplifies the wiring.
That's made me think! What does a Lishui controller do regarding the 15 mph cut-off if it loses the speed signal? It's quite common for a motor's internal speed sensor magnet to fall off. I seem to remember from the days before motors had internal speed sensors, people twisting the wheel magnet away from the sensor to bi-pass the 15 mph limit. Does a Lishui controller still allow power when the display is always showing zero speed? I think it does, so that would be a way of getting past any software locks, except that the power will shutdown after the sleep timer trips, so you'd have to keep switching on every 10 minutes.