Litecoin confidential transactions spook Korean exchanges


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The latest privacy-focused MimbleWimble improve on the Litecoin (LTC) blockchain has prompted two of Korea’s largest crypto exchanges to subject funding warnings concerning the fifth-largest cryptocurrency.

Bithumb and Upbit, which collectively account for almost all of buying and selling quantity in South Korea, launched statements on Monday, advising traders concerning the dangers related to the privacy-enhancing improve. Litecoin’s use of privacy-focused know-how Mimblewimble permits customers to make “confidential transactions,” which permit them to ship tokens whereas concealing transaction knowledge, according to Bithumb. Along with that, Upbit issued the same statement.

The 2 exchanges cited Korea’s Act on the Reporting and Use of Particular Monetary Transaction Data, a legislation that requires crypto exchanges to place in place know-your-customer (KYC) and anti-money laundering (AML) programs.

Korean exchanges have a historical past of delisting cryptocurrencies after making such warnings. The opposite two main South Korean exchanges, Korbit and Coinone, haven’t but made any statements.

MimbleWimble improve idea was first proposed nearly two and a half years in the past. The brand new upgrade was released earlier this year after a majority of nodes authorized the MimbleWimble (MWEB) replace, and can have the ability to work together with new MWEB privateness options. It was accomplished at Litecoin’s block top of two million.

Associated: Litecoin is finally launching its major Mimblewimble upgrade

The MimbleWimble Litecoin improve has been the cryptocurrency’s most eagerly anticipated replace. MWEB not solely provides new privateness options for LTC customers but additionally incorporates blockchain key efficiency enhancements. MWEB compresses pointless transaction knowledge from the blocks, permitting for discreet transactions on the Litecoin blockchain.

Litecoin was created in 2011 as one of many earliest rivals to Bitcoin (BTC). In line with CoinMarketCap, it is the 18th most useful cryptocurrency with a market cap of greater than $5 billion.