Market Analysis Report (24 May 2022)

Two of Korea’s largest cryptocurrency exchanges, Bithumb and Upbit, have issued investment warnings about Litecoin after an upgrade went live on the cryptocurrency’s network allowing transactions to be sent confidentially.

This week Litecoin activated MimbleWimble Extension Blocks (MWEB), which enable users to  conceal transaction data with its confidentiality features while providing a foundation to improve a token’s usability. Through MWEB, transactions are only known between the sender and receiver.

The Litecoin Foundation notes that MWEB “can be seen as a literal extension from Litecoin’s main chain, or a parallel highway, via which you can send coins to the extension block and back to the main chain.”

Both Bithumb and Upbit pointed to Korea’s Act on Reporting and Use of Specific Financial Transaction Information, a policy requiring exchanges to implement know-your-customer and anti-money laundering procedures, in their warnings.

Korean exchanges have been known to delist cryptoassets after issuing such warnings.