Crypto Exchanges UPbit and Bithumb Issue a Warning on Litecoin Transactions

On May 23, the crypto exchanges Upbit and Bithumb issued comments to the investors warning about the dangers linked with the privacy-enhancing update called MimbleWimble. The new upgrade adds a "confidential transactions" feature to the Litecoin blockchain, allowing users to transfer tokens while concealing transaction information.

The two platforms also made a reference to Korea's Act on the Reporting and Use of Specific Financial Transaction Information, which mandates that cryptocurrency exchanges must adopt KYC and AML measures.

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The South Korean crypto exchange Upbit commented on its vision and stated:

“We are striving to prevent money laundering and terrorism financing through digital assets that have technology that makes transaction records unidentifiable.”

On top of that, in view of the probable legal issues faced by the update, both exchanges are considering blacklisting the altcoin.

Following such warnings, Korean-based exchanges are known for delisting cryptocurrencies. However, Korbit and Coinone, two other leading exchanges in the country, have not made any official announcement about the situation yet.

Litecoin (LTC) was launched back in 2011 as one of the earliest Bitcoin (BTC) rivals. According to statistics, it's the 18th largest cryptocurrency token by value with a market cap of more than $5B.

Back in January, the crypto exchange Bithumb announced that it would only allow withdrawals from authorized wallets to comply with policy changes.

In other news, on May 20, the head of AFM Paul-Willem van Gerwen issued a warning to individual investors by stating that the cryptocurrency derivatives exchange should be limited to the wholesale trade only.