The largest crypto exchanges in South Korea, Bithumb and Upbit, have warned LTC owners about blocking confidential transactions that violate KYC and AML rules.
Bithumb and Upbit officially warned against transactions using Mimblewimble technology, which provides the possibility of privacy in the blockchain.
The use of anonymous transactions violates Korean reporting laws and regulators’ requirement for crypto exchanges to implement know-your-customer (KYC) and anti-money laundering (AML) procedures.
Crypto exchange representatives have warned that deposits created using Mimblewimble privacy technologies are non-refundable to the user, as exchanges will not be able to verify them for KYC and AML. In addition, after the warning, users will not be able to create deposits in Litecoin using privacy technology.
As a rule, after some time after such statements, Korean exchanges remove deposits that violate the rules of KYC and AML. Two other major Korean exchanges Korbit and Coinone have not yet made any statements regarding the inadmissibility of using anonymous cryptocurrency transactions in Litecoin.
The Litecoin blockchain was launched in 2011 as one of the first Bitcoin competitors. According to CoinMarketCap, LTC is the 18th largest cryptocurrency by market capitalization (over $5 billion). The developers of the network integrated the Mimblewimble anonymous transaction tool into Litecoin in February 2022. The Litecoin team believes that the integration of Mimblewimble will increase the fungibility of the cryptocurrency and its focus on payments.
Source: Bits
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