Litecoin Under Scrutiny By S. Korean Exchanges of Upbit, Bithumb After it Introduces Privacy Through MimbleWimble 18

Litecoin Under Scrutiny By S. Korean Exchanges of Upbit, Bithumb After it Introduces Privacy Through MimbleWimble

Quick take:

  • Litecoin’s MimbleWimble privacy protocol has resulted in some South Korean exchanges issuing warnings about LTC.
  • Upbit and Bithumb have advised crypto users of the risks associated with the privacy upgrade.
  • Both exchanges cited South Korea’s Act on the Reporting and Use of Specific Financial Transaction Information.

Bitcoin’s little brother, commonly known as Litecoin (LTC), has captured the attention of South Korean exchanges after the implementation of the highly anticipated MimbleWimble upgrade.

The two popular South Korean crypto exchanges of, Bithumb and Upbit, have each released statements warning their user-base of the risks associated with the privacy-centric upgrade. Litecoin’s new upgrade introduces features that block transactional information.

Both exchanges cited the country’s Act on the Reporting and Use of Specific Financial Transaction Information as a basis for the respective notifications. In particular, the Act requires all crypto exchanges in South Korea to implement know-your-customer (KYC) procedures and anti-money laundering (AML) processes.

Upbit and Bithumb Have Delisted Privacy Coins Before

To note is that South Korean exchanges have had a history of delisting cryptocurrencies that are focused on privacy, such as Monero (XMR), Dash (DASH), and ZCash (ZEC). The recent warning of Litecoin for similar reasons could hint at a potential delisting of LTC by both exchanges in the near future.

Such a possibility was explored by the team at WuBlockchain, who stated the following:

South Korean exchanges such as Upbit issued a warning that the MimbleWimble Extension Blocks (MWEB) conducted by the LTC Foundation made the LTC transfer records unrecognizable. This warning may develop into the delisting of LTC in the future.

Litecoin Recaptures $70 Support But Remains in Bear Territory

Concerning price, Litecoin is now trading at $72 after recapturing the crucial $70 support level. However, Bitcoin’s little brother is still trading in bear territory below the 50-day (white), 100-day (yellow), and 200-day (green) moving averages, as seen in the chart below.

Litecoin Under Scrutiny By S. Korean Exchanges of Upbit, Bithumb After it Introduces Privacy Through MimbleWimble 19

Also, from the chart, it can be observed that the daily MFI, RSI, and MACD are all pointing towards renewed buying of Litecoin (LTC), which could lead to a push towards $80. But, Litecoin’s fate in the crypto markets is tied to that of Bitcoin, which is connected to the traditional markets currently under the influence of the mood set by the US Federal Reserve, increasing interest rates to tame inflation.

Consequently, caution is advised when trading Litecoin, more so with the warnings issued by Bithumb and Upbit.