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Litecoin Mimblewimble upgradation spurred chaos in leading Korean exchanges

Litecoin
TL;DR Breakdown
  • Bithumb and Upbit have recently shown their concerns related to Litecoin’s MWEB.
  • The privacy-focused technology of Litecoin will allow the users to have confidential transactions.
  • However, people are eager to use this new feature.

Similar to other cryptocurrencies, Litecoin exists in a decentralized form. It is the most widely accepted alternative for Bitcoin. In the crypto market, Litecoin is incredibly renowned as the digital silver. It has brought some modifications to the blockchain system. It does not require the involvement of a third party during the transaction. Therefore, Litecoin is directly transferred anywhere in the world. 

Mimblewimble Extension Blockchain (MWEB) allows the users of Litecoin for private transactions. Other crypto blockchains allow investors and viewers to see the transactions. However, with the arrival of this upgradation, private transactions are still valid. With its increased use, people are scrutinizing Litecoin and its privacy policies. Like other governments, Korea also fears that it will spur criminal activities.

Crypto users in Korea have to comply with a Korean Act related to Reporting and Use of Specific Financial Transaction Information. It implies that the users should act according to KYC (know-your-customer) and AML (anti-money-laundering) policies. Leading two exchanges with most of the trading volume cited the Korean Act. Bithumb and Upbit are the leading exchanges working in Korea. They have recently highlighted the issues related to the privacy-focused-technology. This stimulus is seen due to the latest advancement by Litecoin in terms of privacy-focused technology. 

Bithumb and Upbit’s latest remarks on Litecoin’s confidential policies

Bithumb and Upbit are the leading crypto exchanges in South Korea. Moreover, it has gained the status of a unicorn. They have grown into mega-companies in the crypto exchange space within a few years. Due to the upgradation of privacy-focused MimbleWimble, these two largest Korean crypto exchanges have taken a stance against it. They forbid the users and make clear warnings to contemplate before investing in Litecoin. 

Bithumb and Upbit clearly illustrate the risks associated with this upgraded privacy policy. Like many other countries, Korea’s crypto exchanges are also concerned about these amendments in the privacy policy. The confidential transfer will hide all the necessary details related to the transaction. Concealing the required data can pave the way for various criminal activities. 

As a result, these two crypto exchanges highlighted the Korean law related to Reporting and Use of Specific Financial Transaction Information. They further elaborated that the transactions must follow the policies pertaining to know-your-customer and anti-money laundering. Korean exchanges are very keen related on privacy policies. They can deliberately delist those cryptocurrencies that are suspicious. Such examples are present when they have omitted different cryptocurrencies due to their illegal actions. However, other leading cryptocurrencies are silent on this issue. 

What is the Mimblewimble upgradation?

Litecoin introduced this new concept related to privacy-focused technology two and a half years ago. Since then, many countries have been skeptical about the new policies. Litecoin brought the upgradation into action about a year ago. Most people were eager to adopt this new feature. Mimblewimble has brought additional features and improvements in blockchain performance. MWEB was initiated at the Litecoin block height of 2 million. 

The new confidentiality feature provides a more stable foundation for other blockchains. It omits unnecessary transaction data and provides only the required one. Although consumers are eagerly using this new feature, other crypto exchanges are more suspicious about it. They are placing alarming warmings and asking people to refrain from indulging. 

Conclusion

The leading exchanges in Korea are making prominent warnings related to Litecoin confidential transactions. These two exchanges highlighted Korean law and requested other crypto exchanges to abide by the Act. Litecoin, the fifth-largest cryptocurrency, has introduced the new privacy policies that have spurred leading crypto exchanges in Korea. These two indicated the issue related to the confidential transactions that will conceal all the necessary data while sending the tokens. It was the most anticipated upgrade. However, leading crypto exchanges have many apprehensions that this will make the transaction process suspicious.

Muhammad Ali

Muhammad Ali

Muhammad Ali is an expert on crypto investments. Loving to write about fintech, he joins the team to provide detailed analyses of the hottest crypto news.

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