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

UpBit and Bithumb are two of the most prominent South Korean cryptocurrency exchanges. They have issued a warning about Litecoin following activation MimbleWimble Extension blocks (MWEB).

Growing Concerns

UpBit announced that it had ended “transaction support digital assets with technology which makes transmission records indistinguishable form the past”, while pointing out Korea’s Act on the Reporting and Use of Specific Financial Transaction Information.

This act requires crypto exchanges to implement anti-money laundering and know-your-customer measures. The notice stated,

“It is believed the Mimblewimble upgrade was performed with a selection function which does not reveal transaction information. Upbit has added transparency for network operators to its transaction support checklist.

Bithumb also sent out a similar notification. Bithumb also sent a similar notification to Litecoin. It cited MWEB implementation as well as how the privacy protocol could threaten existing Korean laws regarding concealing financial transactions. Although no further announcements were made, exchanges usually delist assets following issuing such warnings.

It is important to know that the new privacy upgrade is opt in by nature. This makes it very different from existing privacy coins like Monero. Charlie Lee, founder of Litecoin, stated that the exchanges make the final decision on whether or not to support extensions blocks.

These platforms have the option to stay with the Litecoin mainchain in order to maintain transparency. A key difference between privacy coins and MWEB-powered Litecoin is the existence a separate chain for private transaction. This, according to Ilir Gashi (Litecoin Foundation Community Manager), should protect the crypto-asset from any unwarranted scrutiny by regulators.

Litecoin MimbleWimble Upgrade

After reaching the 75% consensus threshold, Litecoin activated Mimblewimble Extension Blocks upgrade (MWEB) block height 2257920.

Protocol’s main purpose is to increase the viability and security of LTC as an fungible currency. This protocol focuses on reducing fees, increasing privacy, throughput and scaling. David Burkett, Grin++ developer, was the first to propose privacy opt-ins.

The new upgrade will provide some relief for the price and attract privacy-focused investors, after it lost much of its traction due to altcoins. A case of delisting could reduce the chance of Litecoin seeing a meaningful rebound in its price action.

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Marla Brooks

Marla Brooks – Financial Analysis My name is Marla Brooks, and I am the mainstream behind the”observednews.com”  for the powerful and most delicate insights into the latest activities in the financial analysis category. I started my journey as an independent financial consultant. I had approximately nine years of experience in this field. I am free soul so; my passion for exploring the world has taken me to the nations across the globe and given me the chance to report for a portion of the best news associations. Currently, I am a full-time editor as experienced in finance and started to use my abilities.

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