The Litecoin (LTC) blockchain’s latest privacy-focused MimbleWimble upgrade has caused two of Korea’s top crypto exchanges Bithumb and Upbit to issue investment cautions regarding the fifth-largest cryptocurrency.
Bithumb and Upbit, which together account for the majority of South Korean trading volume, issued statements on Monday warning investors about the hazards of the privacy-enhancing upgrade.
According to Bithumb, Litecoin’s adoption of the privacy-focused technology Mimblewimble allows users to execute “secret transactions,” which allow them to send tokens while hiding transaction details. A similar remark was released by Upbit.
The two exchanges cited Korea’s Act on the Reporting and Use of Specific Financial Transaction Information, a law that mandates that cryptocurrency exchanges implement Know Your Customer (KYC) and Anti-Money Laundering (AML) procedures.
After issuing such warnings, Korean exchanges have a history of delisting cryptocurrencies. Korbit and Coinone, the other two big South Korean exchanges, have yet to make any announcements.
Nearly two and a half years ago, the MimbleWimble update concept was first offered. The new upgrade, which will be able to interface with new MWEB privacy features, was published earlier this year when a majority of nodes approved the MimbleWimble (MWEB) update. It was completed at the 2 million block height of Litecoin.
The MimbleWimble Litecoin upgrade has been the most highly awaited update in cryptocurrency’s history. MWEB offers not just additional privacy features for LTC users, but also critical blockchain performance enhancements. MWEB removes extra transaction data from blocks, allowing for more discrete transactions on the Litecoin blockchain.
Litecoin was founded in 2011 as one of the first Bitcoin competitors (BTC). It has a market cap of more than $5 billion, according to CoinMarketCap, making it the 18th most valuable cryptocurrency.