Litecoin’s Mimblewimble update Litecoin (LTC) Just two days after it was activated on its network, the platform faced a serious hurdle. According to a recent development, two major crypto exchanges based in South Korea have warned their investors of a big problem. According to 2 major exchanges, this upgrade allows users to send tokens by hiding their transaction information and gives the platform a “secret transaction” capability.
Bithumb and Upbit, South Korea’s two largest crypto exchanges by volume, detailed their decision today, explaining the reasons for their concerns. This warning comes at a time when major investors are keeping a close eye on Litecoin in anticipation of a positive sentiment following the latest update.
“Confidential transaction information”
Upbit, one of the 4 largest crypto money platforms based in Korea, warned Litecoin investors with the following words:
“Litecoin (LTC) has been set as a watchdog. The Mimblewimble update is believed to use a selection function that does not reveal transaction details. Upbit has added transparency of network operation to its transaction support checklist.”
The exchange has also ended trading support for digital assets with technology that makes transaction records indistinguishable from the past.
Alongside Upbit, the Bithumb exchange has also issued a new investment alert regarding Litecoin. The token has been added to the list of products specified in the investment alert announcement and among the reasons that refer to the item classification policy.
“The Mimblewimble (MWEB) expansion block upgrade includes improvements in the scalability of the Litecoin network, but its key element includes an enhanced ‘Secret Transaction’ option that does not disclose transaction information.”
In making these warnings, the exchanges referred to South Korea’s legislation on Specific Financial Transaction Information. The law requires cryptocurrency exchanges to follow a know-your-customer (KYC) process, along with anti-money laundering regulations. Last year, the country announced that it would shut down cryptocurrency exchanges that did not comply with this legislation.
Litecoin creator Charlie Lee said in a tweet due to the activation of the Mimblewimble update:
“In terms of modifiability and privacy, I believe 90 percent of the time MWEB is what you’re looking for. This will be sufficient for the majority of individuals. That’s the difference between living in a glass house and living in a house with windows (they make the 90% privacy they provide look like a house with windows). People who need 100% privacy can live in a windowless house.”
In terms of fungibility and privacy, I believe MWEB gets you 90% there. For most people that’s good enough. It’s the difference between living in a glass house vs living in a house with windows. For people who need 100% privacy, they can live in a house with no windows. https://t.co/3J6Els4SIX
— Charlie Lee Ⓜ️🕸️ (@SatoshiLite) May 22, 2022
Potential Litecoin Delist
This announcement, which could become a major setback for Litecoin investors, could potentially lead to a de-listing of the coin looking forward, according to experts. Litecoin is trading at $72.92 at the time of writing, up 1.06% in the last 24 hours, according to CoinMarketCap.
You can check the price movements here.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, KoinFinans and the author of this content cannot be held responsible for personal investment decisions.