Litecoin confidential transactions spook Korean exchanges

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

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

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

Korean exchanges have a history of delisting cryptocurrencies after making such warnings. The other two major South Korean exchanges, Korbit and Coinone, have not yet made any statements.

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

Related: Litecoin is finally launching its major Mimblewimble upgrade

The MimbleWimble Litecoin upgrade has been the cryptocurrency’s most eagerly anticipated update. MWEB not only adds new privacy features for LTC users but also incorporates blockchain key performance improvements. MWEB compresses unnecessary transaction data from the blocks, allowing for discreet transactions on the Litecoin blockchain.

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

All Dutch and English crypto news!

Bitcoin miner Mawson to defer all major capital expenditures until market conditions normalize

On Tuesday, Bitcoin (BTC) mining company Mawson Infrastructure Group said that it was suspending major capital expenditures until market conditions normalize. In addition, the firm...

Key Bitcoin price metrics say BTC bottomed, but traders still fear a drop to $10K

The crypto market is currently going through a period of heightened volatility as global economic conditions continue to worsen amid a backdrop of rising inflation...

That’s ‘Sir’ Crypto Dad: French order knights former CFTC chair Chris Giancarlo

The French government has given former United States Commodity Futures Trading Commission chair Chris Giancarlo, also known as "Crypto Dad," the equivalent of a knighthood. In...

Russian Duma passes bill to remove VAT, lower income tax rates on digital asset sales

The State Duma, the lower house of the Russian legislature, has passed a bill on the taxation of digital assets that exempts their sale from...

Beste exchanges

Koop je crypto bij Bitvavo