Litecoin (LTC): privacy protocol contrary to South Korean law?

Barely announced, the new Mimblewimble confidentiality protocol of the Litecoin (LTC) blockchain is already causing controversy. In any case, on the side of South Korea. Two of the country’s leading crypto exchanges have just warned investors about this new option. Confidentiality would be inconsistent with certain South Korean state financial laws and regulations.

South Korea’s Major Exchanges Warn Investors About Litecoin (LTC) Privacy Protocol

Mimblewimble on Litecoin (LTC): reasons for concern

Litecoin is on the list of the oldest, but also the most popular cryptocurrencies. It is available on almost all exchange platforms. It is also one of the most accepted virtual currencies around the world. Litecoin also appears to be one of the first alternatives to bitcoin (BTC). Recently, the network enabled a new privacy protocol, thanks to the Mimblewimble extension that allows users to opt for a completely anonymous transaction. While most of the community is enthusiastic about this upgrade, there are some reservations. This is the case with South Korean crypto exchanges.

Bithumb and Upbit in this case, two of the biggest crypto exchanges in South Korea, are concerned about the implementation of Mimblewimble on the Litecoin blockchain. In question, a Korean law relating to the declaration and use of specific information on financial transactions. It would seem that all cryptocurrency users in Korea must comply. More clearly, it is the KYC, a mandatory customer verification procedure imposed on all financial institutions, traditional or crypto. The procedures imposed by the AML (fight against money laundering) also prohibit anonymity in financial transactions, including cryptocurrencies.

Litecoin (LTC) in the hot seat in South Korea?

Korean exchanges are very committed to privacy policies. Taking into account the laws and regulations that govern all financial transactions in South Korea, Bithumb and Upbit warned investors about this privacy protocol. Bithumb speaks: “Bithumb’s listing policy includes the removal of digital assets that are contrary to regulations or guidelines provided by government and financial regulators.” Would Litecoin be in danger on this platform? Upbit has also raised this need for legal compliance, but has not yet raised the possibility of removal.

MimbleWimble is a blockchain design that allows for more privacy and better network scalability. The design differences focus on a compact history, which makes it easier and faster to process and verify data. There are two other major crypto exchanges in South Korea besides Bithumb and Upbit. These are Korbit and Coinone. But the latter have not yet spoken on the subject.

Conclusion

Enabling the Mimblewimble protocol does not mean automatic anonymity for all transactions on the Litecoin blockchain. Confidentiality is indeed offered as an option. Users are therefore free to activate it or not. This should reassure Bithumb and Upbit exchanges.

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Emile Stantina

Passionate about blockchain technology and cryptocurrencies, we contribute to popularize and democratize this new world. “Chancellor on brink of second bailout for banks”

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Litecoin (LTC): privacy protocol contrary to South Korean law?


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