Korean Crypto Exchanges Issue Litecoin Warnings Over Confidential Transactions

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Bithumb and Upbit, two of Korea’s Big Four crypto exchanges that account for the majority of trading volume, have issued investment warnings about Litecoin following an update that allows transactions to be sent confidentially.

Litecoin’s activation of privacy-focused technology Mimblewimble brings a “confidential transaction” capability to the Litecoin blockchain, allowing users to send tokens while hiding transaction information, Bithumb said in a post on Monday. Upbit also issued a similar warning today. The other two major Korean exchanges, Korbit and Coinone, have yet to make an announcement.

Both exchanges pointed to Korea’s law on reporting and use of specific financial transaction information, a policy that requires crypto exchanges to implement know-your-customer (KYC) and anti-trust procedures. money laundering (AML). Korean exchanges tend to remove tokens after issuing such warnings.

Litecoin was launched in 2011 as one of bitcoin’s earliest rivals. It is the 18th largest crypto token by value, with a market capitalization of over $5 billion, according to CoinMarketCap. The network introduced Mimblewimble, an idea first proposed over two and a half years ago, on May 20.

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