Korea’s two largest crypto exchanges warn Litecoin because of the Mimblewimble upgrade
South Korea’s largest exchanges have had certain concerns about the Litecoin (LTC) network as the platform’s latest upgrade could hide transaction information.
Specifically, two of the four largest South Korean cryptocurrency exchanges, which account for the majority of trading volume, issued an investment warning about Litecoin shortly after the platform officially activated its historic upgrade Mimblewimble.
Bithumb, South Korea’s No. 1 crypto exchange, noted that the Mimblewimble integration through the Mimblewimble Extension Blocks (MWEB) upgrade includes improvements to the scalability of the Litecoin network, but the core section of the protocol also includes an enhanced privacy option not to disclose transaction information, contrary to the rules that exchanges in Korea must follow.
Meanwhile, Upbit claims it is working to prevent money laundering and the financing of crimes that threaten the community through cryptographic assets whose technology makes transmission records unidentifiable. In addition, the commented exchange will not have any deposits made using the Mimblewimble function with Upbit.
MWEB was originally introduced in November 2019 as part of a Litecoin improvement proposal. Interchangeability improvement technology aims to increase the security between sender and receiver in a transaction. According to the network, MWEB will give Litecoin users the option of not having to publicly display how much users are sending or how much LTC they hold in an MWEB address.
In fact, the Financial Action Task Force (FATF) cryptocurrency handling rules were also launched in South Korea in March of this year. Above a certain threshold, FATF requires virtual asset service providers (VASPs) to disclose information about those involved in crypto transactions.
In addition to the country’s know-your-customer (KYC) and anti-money laundering (AML) guidelines, a key part of the FATF proposal is sufficient security measures to identify the originator or beneficiary of the activity. in the industry.
Therefore, after the warnings of Bithumb and Upbit, many other major exchanges in Korea may also make similar announcements about Litecoin. This proves that delisting or a series of measures to restrict LTC trading in Korea will be possible in the near future.
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