Litecoin’s MWEB upgrade, which makes transactions confidential, comes at a moment when most crypto exchanges follow strict KYC guidelines and AML guidelines.
Crypto exchange Binance has announced they are discontinuing support for Litecoin LTC transactions sent through the most recent MimbleWimble upgrade .
Binance advised that transactions sent via the MWEB function could be lost because the crypto exchange cannot verify the sender’s address. Cointelegraph did not receive a response to its request for comments.
This announcement comes days after major South Korean cryptocurrency exchanges delisted LTC following the most recent upgrade that keeps transaction information private. Following warnings from five other crypto exchanges, the delisting took place just weeks ago. The delisting was not surprising, as S.Korea is well-known for its strict privacy laws which prohibit anonymous transactions on crypto platforms.
LTC’s MWEB upgrade was one of the most important updates to go live this year. It has been almost two and a half years since it was first proposed. This upgrade included privacy features as well as made LTC’s blockchain more scalable.
Gate.io, another popular cryptocurrency trading platform, also stopped support of MWEB Litecoin transactions. It claimed anonymous transactions were not supported by the platform.
The decision to terminate support for the MWEB function comes at a time when crypto exchanges are in turmoil. Recently, Binance was charged by Reuters with facilitating $2.5 Billion worth of illegal transactions.
Chagpeng Zhao (CZ), Binance’s CEO, refuted these allegations and pointed to data released by Chainalysis, a blockchain analytics firm.
The United States Securities and Exchange Commission also opened a Security violations investigation into Binance’s BNB ICOsale.
