Following the activation of MimbleWimble Extension Blocks, two large South Korean cryptocurrency exchanges, UpBit and Bithumb, have issued a warning for Litecoin (MWEB).
The MWEB upgrade
After reaching the 75 percent network consensus barrier, Litecoin implemented the Mimblewimble Extension Blocks (MWEB) upgrade at block height 2257920.
The protocol’s major goal is to increase LTC’s viability as a fungible currency by lowering costs and increasing privacy, throughput, and scalability. Grin++ engineer David Burkett was tasked with directing the creation of privacy opt-ins two years ago.
The new upgrade is expected to provide a buffer for its price and attract privacy-focused investors after it lost a lot of traction due to new-age cryptocurrencies. Delisting, on the other hand, might decrease the possibilities of a much-needed major price comeback in Litecoin.
Major Concern
UpBit stated that it will be ending “transaction support for digital assets using technology that renders transmission records indistinguishable from the past,” citing Korea’s Act on the Reporting and Use of Specific Financial Transaction Information as justification.
Crypto exchanges in the country must comply with the act’s know-your-customer (KYC) and anti-money laundering (AML) requirements.
Upbit notified the following:
“The Mimblewimble update is thought to have been carried out with a selection mechanism that hides transaction details. The item of network operator transparency has been added to Upbit’s transaction support checklist.”
Bithumb sent out a similar warning as well. The site also labelled Litecoin as a potential investment risk, noting MWEB implementation and how the privacy protocol could jeopardise existing Korean financial transaction privacy legislation. There have been no further disclosures, but exchanges routinely delist assets after issuing such warnings.
However, it’s vital to note that the new privacy update is opt-in only, which distinguishes it from existing privacy coins like Monero. Litecoin founder Charlie Lee previously stated that exchanges had the last say on whether or not to implement extension blocks.
These platforms can choose to stay on the Litecoin main chain to maintain transparency. Another important difference between MWEB-powered Litecoin and privacy coins is the availability of a separate chain for private transactions, which, as Litecoin Foundation Community Manager Ilir Gashi has highlighted, should keep the crypto-asset free from unnecessary regulatory scrutiny.
Read more: Upbit, South Korean Exchange, faces scrutiny by KFTC
