The biggest exchanges in South Korea have voiced some issues about the Litecoin (LTC) network as the newest update to the platform could hide transaction facts.
Notably, two of the 4 biggest South Korean cryptocurrency exchanges, which account for the vast majority of trading volume, issued an investment warning on Litecoin shortly following the platform officially activated its historic update.
Bithumb mentioned that the integration of Mimblewimble by way of the Mimblewimble Extension Blocks (MWEB) update contains enhancements to the scalability of the Litecoin network, but the key segment of the protocol also contains an enhanced confidential transaction possibility. Do not disclose transaction facts.
Meanwhile, Upbit says it is functioning to avert cash laundering and the financing of crimes that threaten the neighborhood by cryptographic assets whose technologies can make transmission data unidentifiable. Also, the commented exchange will have no deposits produced applying the Mimblewimble function with Upbit.
“For deposits made using Mimblewimble, please note that Upbit may not return it to the receiving wallet address as the sender’s identity cannot be verified.”
MWEB was initially launched in November 2019 as element of a Litecoin improvement proposal. Interchangeability enhancement technologies aims to maximize the protection involving sender and recipient in a transaction. According to the network, MWEB will give Litecoin end users the possibility of not obtaining to publicly demonstrate how a great deal end users are sending or how a great deal LTC they hold in a MWEB deal with.
In reality, the Financial Action Task Force (FATF) cryptocurrency management guidelines had been also launched in South Korea in March of this 12 months. Above a sure threshold, the FATF demands virtual asset services companies (VASPs) to disclose facts about people concerned in crypto transactions.
In addition to the country’s recommendations on know-your-buyer (KYC) and anti-cash laundering (AML), a critical element of the FATF proposal is ample protection measures to recognize the originator or beneficiary of the organization in the sector.
Therefore, following the warnings from Bithumb and Upbit, lots of other main exchanges in Korea could also make comparable announcements about Litecoin. This exhibits that delisting or a series of measures to restrict LTC trading in Korea will be achievable in the close to potential.
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