Two of South Korea’s leading cryptocurrency exchanges, UpBit and Bithumb, have issued a warning for Litecoin after MimbleWimble Extension Blocks were activated.
UpBit announced that it is ending “transaction support for digital assets with technology that makes transmission records indistinguishable from the past,” while citing Korea’s Law on Reporting and Use of Specific Financial Transaction Information.
By law, crypto exchanges in the country are required to implement money laundering measures.
The Mimblewimble upgrade is believed to be accomplished with a selection function that does not disclose transaction information. Upbit has added the network operators transparency clause to its transaction support checklist.
The platform also designated Litecoin as an investment alert, citing the MWEB implementation and how the privacy protocol could threaten existing Korean laws regarding hiding financial transactions. No announcement yet. Exchanges may delist assets after such warnings.
The new privacy upgrade is optional therefore making it quite different from existing privacy coins like Monero.
For transparency, platforms can choose to stick with the Litecoin main chain. Another difference between Litecoin and privacy coins is the existence of a separate chain for private transactions, which should keep the crypto-asset from unauthorized scrutiny by regulators, explained Litecoin Foundation Community Manager Ilir Gashi.
Litecoin MimbleWimble Upgrade
Litecoin at block height 2257920 after reaching 75% network consensus threshold Enabled MWEB upgrade.
The main goal is to lower fees and improve personal rights, yields and viability of LTC as a convertible currency.
A delisting event could reduce Litecoin’s chances of rebounding in price action.