Binance Ended Support For Anonymous LTC Transactions

Binance ended support for anonymous LTC transactions after the MimbleWimble upgrade which makes the transactions confidential at a time when most of the exchanges are implementing strict AML and KYC guidelines as we can see more today in our latest Litecoin news.

Binance ended support for LTC and warned that any transaction sent thorugh the MWEB function will be lost since the crypto exchange is not able to verify the sender’s address. The announcement came a few days after the South Korean Exchanges delisted LTC because of the latest upgrade which makes the transaction information confidential. The delisting came weeks after exchanges issued warnings similar to Binance but the delisting didn’t come as a surprise as Korea is known for its strict policies that ban anonymous transactions on exchanges.

The MWEB upgrade on LTC is one of the biggest updates that went live earlier this year about two and half years after it was proposed initially. The upgrade added several privacy features and made the LTC blockchain scalable. The decision to end support for the MWEB function came at a time when the leading exchange got involved in controversies. Binance was accused of facilitating $2.5 billion worth of illicit transactions. The CEO of Binance, Changpeng Zhao refuted these allegations and pointed to the data released by Chainalysis.

The US SEC opened a Security violation investigation about Binance’s BNB ICO sale back in 2017. the privacy feature that was seen as an upgrade, turned out to be a bane for the cryptocurrency and the MWEB upgrade came at a time when the regulatory oversight is at its highest and the privacy features were the main target of regulators across the world.

Litecoin will be delisted from more crypto exchanges in South Korea, starting from Upbit and Bithumb, over the modifications made to the coin that enable greater privacy when conducting the transactions. In the notices regarding LTC, Bithumb and Upbit stated they will shut down the marekt support for the 20-th biggest cryptocurrency by market cap because of the MimbleWimble extension block network upgrade which is in conflict with the South Korean anti-money laundering regulation.

The crypto exchanges reached out to the Litecoin Foundation to understand the privacy upgrade and after a review, the exchange decided to end the support for the LTC transactions so users will have 30 days to withdraw their funds as Upbit said in the report.