Korean Exchanges Redflag Litecoin Mimblewimble Update

Just two days after the Litecoin’s Mimblewimble update activated on the Litecoin network, a stumbling block came in the way. In a latest, two South Korea-based crypto exchanges warned investors about a major defect.

Bithumb and Upbit, South Korea’s top two crypto exchanges by volume, made the announcements on Monday while detailing the reasons. This comes at a time when big investors were steadily eyeing Litecoin anticipating bullish sentiment after the new upgrade.

‘Confidential Transaction Information’

Upbit alerted investors of Litecoin saying,

“Litecoin (LTC) has been designated as a watchdog. It is believed that the Mimblewimble upgrade has been carried out with a selection function that does not expose transaction information. Upbit added the item of transparency of network operation to the transaction support checklist.”

The exchange has also terminated transaction support for digital assets with technology that makes transmission records indistinguishable from the past.

Meanwhile, Bithumb also announced the new designation of investment warning with regard to Litecoin. The token was added to the list of newly designated items for investment warning items and reasons citing its policy for designation of items.

“The Mimblewimble (MWEB) expansion block upgrade includes enhancements to the scalability of the Litecoin network, but its core item includes an enhanced ‘Confidential Transaction’ option that does not expose transaction information.”

The exchanges cited South Korea’s legislation on Specific Financial Transaction Information. The law requires cryptocurrency exchanges to follow the know-your-customer (KYC) process besides anti-money laundering regulations.

Charlie Lee, Litecoin creator, said on the occasion of Mimblewimble update activation in a tweet,

“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.”

Potential Litecoin Delisting

In what could go on to become a massive downside for Litecoin investors, the announcement could lead to potential delisting of the coin, going forward. As of writing, Litecoin was trading at $72.92, up 1.06% in the last 24 hours, according to CoinMarketCap.

Anvesh is keen on writing about major announcements around crypto adoption by institutions and popular personalities. Having been associated with the cryptocurrency industry since 2016, his interest in this space helped pivot his journalism career to the blockchain ecosystem. Follow him on Twitter at @AnveshReddyEth and reach out to him at anvesh (at) coingape.com

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.