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 situation funding warnings in regards to 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 buyers in regards to the dangers related to the privacy-enhancing improve. Litecoin’s use of privacy-focused expertise Mimblewimble permits customers to make “confidential transactions,” that permit them to ship tokens whereas concealing transaction information, according to Bithumb. Upbit issued an analogous assertion.

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The 2 exchanges cited Korea’s Act on the Reporting and Use of Particular Monetary Transaction Info, a legislation that requires crypto exchanges to place in place Know Your Buyer (KYC) and Anti-Cash 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 virtually two and a half years in the past. The brand new upgrade was released earlier this year after a majority of nodes permitted the MimbleWimble (MWEB) replace, and can be capable to work together with new MWEB privateness options. It was accomplished at Litecoin’s block peak 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 information from the blocks, permitting for discreet transactions on the Litecoin blockchain.

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