South Korean Crypto Exchanges Issue Investment Warnings After Litecoin’s MWEB Update

Two main South Korean cryptocurrency exchanges, UpBit and Bithumb, have issued a warning for Litecoin after the activation of MimbleWimble Extension Blocks (MWEB).

Growing Concerns

UpBit revealed terminating “transaction support for digital assets with technology that makes transmission records indistinguishable from the past” whereas pointing to Korea’s Act on the Reporting and Use of Specific Financial Transaction Information.

Under this act, crypto exchanges within the nation are required to implement know-your-customer (KYC) and anti-money laundering (AML) measures. The discover learn,

“It is believed that the Mimblewimble upgrade has been carried out with a selection function that does not expose transaction information. Upbit added the item of transparency of network operators to the transaction support checklist.”

The same notification was despatched out by Bithumb as effectively. The platform additionally designated Litecoin as an funding warning citing MWEB implementation and the way the privateness protocol might threaten the present Korean legal guidelines about concealing monetary transactions. No additional bulletins have been made but, however exchanges sometimes delist property after issuing such warnings.

However, you will need to perceive new privateness improve is opt-in in nature, thereby making it fairly totally different from the present privateness cash reminiscent of Monero. Previously, Litecoin founder Charlie Lee said that exchanges have the final word name on whether or not to help extension blocks.

To keep transparency, these platforms can select to stay with the Litecoin predominant chain. Another key distinction between MWEB-powered Litecoin and privateness cash is the existence of a separate chain for personal transactions, which, as explained earlier by Litecoin Foundation’s Community Manager Ilir Gashi, ought to maintain the crypto-asset away from unwarranted scrutiny of regulators.

Litecoin MimbleWimble Upgrade

Litecoin activated the Mimblewimble Extension Blocks (MWEB) improve at block top 2257920 after attaining the 75% community consensus threshold.

The predominant intention of the protocol is to enhance the viability of LTC as a fungible forex by specializing in decreasing charges and ramping up privateness, throughput, and scalability. The concept for privateness opt-ins was first proposed two years in the past, and Grin++ developer David Burkett was tasked with spearheading its growth.

After shedding a lot of its traction owing to new-age altcoins, the brand new improve is predicted to supply a cushion for its value and lure privacy-focused traders. However, a case of delisting might dampen the probabilities of a much-needed significant rebound in Litecoin’s value motion.