MimbleWimble is Litecoin’s newest privacy update. Litecoin enjoys age and a strong market capitalization.
Some South Korean exchanges showed their worries about Litecoin’s MimbleWimble update, which effectively covers the number of transactional operations on this platform, giving adequate privacy to its users.
Upbit and Bithumb revealed their statements, highlighting concern about this update’s risks following anti-money laundering and other financial crime regulations.
Bithumb was the most inflexible of the exchanges regarding the possibility of delisting litecoin (LTC) entirely from its exchange market. Although the decision is still unclear, Bithumb indicates in its statement that it will get revealed when the time comes.
Given the cited policies, Bithumb has placed LTC under observation and plans to announce a final move on whether or not it will keep allowing its transactions.
Upbit Does not Obstruct Litecoin but Remains Vigilant
Upbit, for its part, explains in its statement that to follow financial and anti-money laundering regulations, it also has LTC under study.
Although it does not represent a threat to delist LTC, it alerts users not to conduct any operation through MimbleWimble. They would not confirm this financial operation because it cannot set verification on the user’s wallet following the current policies.
According to the CoinRanking portal, Upbit is the second exchange with the highest daily LTC exchange rate because it approached at least 35 million dollars (USD). Bithumb ranked in 19th place because it permits LTC trading with at least USD 3.2 million daily.
Could Other Exchanges Obstruct Litecoin?
A different case to that of the South Korean exchanges has been Binance, whose mining pool supported the MimbleWimble update. So far, there have been zero comments on keeping Litecoin under notable observation or setting up an obstruction in its operations. However, Binance has certain fame for following KYC and AML policies globally.
Setting up a suspension on the exchange of LTC could seriously impact both Binance and the cost of Litecoin, as Binance ranks first among the exchange markets for this digital asset, with a constant volume of USD 64 million daily in trading operations.
Other exchanges have not highlighted their stance on this new Litecoin update. However, regulatory entities such as the Financial Action Task Force (FATF) are strengthening regulations globally, with a solid focus on Bitcoin and digital assets since April.
Suppose the volume of LTC deposit transactions in exchanges experiences new growth. In that case, the procedures may approach a more intense fluctuation. Some markets will close this digital asset, even if it is one of the most critical digital items appearing in the market space.
By: Jenson Nuñez
