Confidential Litecoin Transactions Scare Korean Exchanges

Confidential Litecoin Transactions Scare Korean Exchanges

MimbleWimble’s recent privacy-focused upgrade to the Litecoin (LTC) blockchain has prompted two of Korea’s largest cryptocurrency exchanges to issue investment warnings on the fifth largest cryptocurrency.

Bithumb and Upbit, which together account for the majority of trading volume in South Korea, released statements on Monday warning investors of the risks associated with the privacy upgrade. Litecoin’s use of privacy-focused Mimblewimble technology allows users to conduct “confidential transactions,” which allow them to send tokens by hiding transaction data, according to Bithumb. Upbit issued a similar statement.

The two exchanges cited Korea’s Law on the Reporting and Use of Specific Financial Transaction Information, a law that requires cryptocurrency exchanges to put in place anti-money laundering (KYC) and know-your-customer (KYC) systems. AML).

Korean exchanges have a history of delisting cryptocurrencies after making such warnings. The other two major South Korean exchanges, Korbit and Coinone, have yet to make any statement.

“You’re a wizard, Harry.”

Mimblewimble is not only a tongue-tying spell used in the magic series, but it is also a privacy-oriented decentralized protocol that structures and stores transactions on the blockchain.

The MimbleWimble upgrade concept was first proposed almost two and a half years ago. The new update was released earlier this year after a majority of nodes approved the MimbleWimble (MWEB) update, and you will be able to interact with the new privacy features of MWEB. It was completed at the height of the 2 million Litecoin block.

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The MimbleWimble Litecoin update has been the most anticipated update of the cryptocurrency. MWEB not only adds new privacy features for LTC users, but also introduces key performance improvements to the blockchain. MWEB compresses unnecessary block transaction data, enabling discrete transactions on the Litecoin blockchain.

Litecoin was created in 2011 as one of the first competitors to Bitcoin (BTC). According to CoinMarketCap, it is the 18th most valuable cryptocurrency, with a market capitalization of more than $5 billion.

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