Binance warns against using Litecoin’s Mimblewimble privacy feature. Binance will not support Litecoin transactions using MimbleWimble; this extension allows users to send anonymous transactions.
Since activating the MimbleWimble privacy feature, Litecoin has faced a lot of struggles. Last week, five of South Korea’s most prominent exchanges, Upbit, Bithumb, Coinone, Korbit, and Gopax, removed LTC from their platforms.
About this situation, Upbit cited the policy on the Reporting and Use of Specific Financial Transaction Information, which bans anonymous transactions in the South Korean region, as the most vital cause for ending their assistance for Litecoin.
Now the most significant exchange, Binance, filed a statement about this digital asset that says Binance will not bring more backup to Litecoin deposits and withdrawals that employ the MimbleWimble Extension Blocks (MWEB) feature. This extension allows sending confidential LTC transactions without highlighting any transaction data.
Any LTC deposit achieved to Binance through the MWEB option will get accepted or returned as the entity has no power to verify the sender’s address, which will become a loss of funds.
Now, the release of this statement makes it clear that Binance will not bring any support to Litecoin transactions that use the so-called MimbleWimble Extension Blocks (MWEB). However, unlike South Korean exchanges, Binance did not take the LTC delisting pathway list but suggested users not to carry out bitcoin transfers with the MWEB option as it would become a vast loss of funds.
The Block also highlights that Binance does not show a rejective stance on privacy-focused coins. It monitors trading activities in some of the most prominent privacy coins like Monero and zCash.
Therefore, it is not necessarily a more strict regulatory compliance than Binance alleges, but rather the inconvenience of dealing with Litecoin’s MWEB trading activities. In particular, it is impossible to see and identify the crypto addresses in an MWEB transaction since they remain hidden.
On the other hand, Litecoin registered a 14% drop and a price approaching USD 42. It is worth noting that the market, in general terms, is in a clear decadence cycle, starting with Bitcoin, which relies on a current cost registered at USD 24,000, 12.51% less than yesterday.
In this way, the most used digital currencies keep going through this hard road after the black Saturday experienced days ago, which meant a new face of the lack of trust in the crypto environment installed due to the increase in interest rates and the fall of world stock markets.
By: Jenson Nuñez.
