Litecoin’s Privacy Upgrade Raises Concerns from Korean Crypto Exchanges
2 min read

Litecoin’s Privacy Upgrade Raises Concerns from Korean Crypto Exchanges

By News Desk

Litecoin’s privacy-centric Mimblewimble upgrade has crypto exchanges in Korea worried about how to accommodate LTC holders in a compliant manner.

Mimblewimble, which was pushed through a Litecoin Improvement Proposal in 2019, is a protocol that allows users to opt-in to confidential transactions as long as their wallet or exchange supports it.

Bithumb, ranked as the number 20 crypto exchange on CoinMarketCap in terms of volume, issued a warning in regards to the Mimblewimble upgrade.

The Korean exchange cited the country’s local know-your-customer (KYC) and anti-money laundering (AML) laws in the announcement, namely its “Specific Financial Information Act”, which took effect on March 25, 2021.

“The revised Specific Financial Information Act stipulates that virtual asset service providers (VASPs) are obliged to efficiently prevent money laundering and public threatening activities as legal and institutional devices to prevent the risk of money laundering and public threatening through anonymous digital asset transactions,” Bithumb said.

“Bithumb decides to designate [Litecoin] as investment warning assets, and will make the final decision on whether to end the transaction support.”

Image via Shutterstock

Upbit, another Korean-based exchange, released a similar statement.

Korea is known for having stricter laws on cryptocurrencies, particularly when it comes to privacy and anonymity. In 2020, privacy coins like Monero (XMR), Zcash (ZCASH) and DASH were banned from being sold on exchanges.

The country’s The Financial Services Commission (FSC) refers to privacy coins as “dark coins,” and banned them with the justification that they are predominantly used for ransomware attacks and money laundering.

The Litecoin Network achieved 75% consensus for Mimblewimble on May 2nd.

Newsletter Inline

Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.

Latest Posts

Trader Joe Review
Trader Joe Review 2022: Complete Guide to the Top DEX on Avalanche
Trader Joe Review

Trader Joe Review 2022: Complete Guide to the Top DEX on Avalanche

July 2, 2022 30 min read
Huobi Global Review
Huobi Global Review 2022: Good Exchange with DEEP Liquidity
Huobi Global Review

Huobi Global Review 2022: Good Exchange with DEEP Liquidity

June 29, 2022 37 min read
FTX vs FTX US Review
FTX vs FTX US: Which one is BEST for You?
FTX vs FTX US Review

FTX vs FTX US: Which one is BEST for You?

June 27, 2022 14 min read
Bancor Review
Bancor Review: Impermanent Loss Protector?
Bancor Review

Bancor Review: Impermanent Loss Protector?

June 22, 2022 15 min read
Bridge Mutual Review
Bridge Mutual: Insurance for your Crypto
Bridge Mutual Review

Bridge Mutual: Insurance for your Crypto

June 22nd, 2022 22 min read
Serum Review
Serum Review: Solana’s One-Stop DeFi Toolbelt
Serum Review

Serum Review: Solana’s One-Stop DeFi Toolbelt

June 16, 2022 17 min read
Raydium Review: Solana’s DeFi Liquidity Mammoth

Raydium Review: Solana’s DeFi Liquidity Mammoth

June 11, 2022 17 min read

Related Posts

Trader Joe Review
Trader Joe Review 2022: Complete Guide to the Top DEX on Avalanche
Trader Joe Review

Trader Joe Review 2022: Complete Guide to the Top DEX on Avalanche

July 2, 2022 30 min read
Huobi Global Review
Huobi Global Review 2022: Good Exchange with DEEP Liquidity
Huobi Global Review

Huobi Global Review 2022: Good Exchange with DEEP Liquidity

June 29, 2022 37 min read
FTX vs FTX US Review
FTX vs FTX US: Which one is BEST for You?
FTX vs FTX US Review

FTX vs FTX US: Which one is BEST for You?

June 27, 2022 14 min read
Bancor Review
Bancor Review: Impermanent Loss Protector?
Bancor Review

Bancor Review: Impermanent Loss Protector?

June 22, 2022 15 min read
Bridge Mutual Review
Bridge Mutual: Insurance for your Crypto
Bridge Mutual Review

Bridge Mutual: Insurance for your Crypto

June 22nd, 2022 22 min read
Serum Review
Serum Review: Solana’s One-Stop DeFi Toolbelt
Serum Review

Serum Review: Solana’s One-Stop DeFi Toolbelt

June 16, 2022 17 min read
crypto com
Crypto.com Exchange Review 2022: A World-Class Crypto Exchange
crypto com

Crypto.com Exchange Review 2022: A World-Class Crypto Exchange

June 14th, 2022 30 min read