Binance ends support for anonymous Litecoin transactions

Crypto alternate Binance announced they’re ending assist for Litecoin (LTC) transactions despatched by the latest MimbleWimble (MWEB) upgrade.

Binance warned that any transaction despatched by the MWEB operate could be misplaced for the reason that crypto alternate can’t confirm the sender’s tackle. The crypto alternate didn’t reply to Cointelegraph’s request for feedback on the time of publishing.

The announcement comes simply days after major South Korean crypto exchanges delisted LTC because of the newest improve, which makes transaction data confidential. The delisting got here simply weeks after 5 crypto exchanges issued warnings just like Binance. Nonetheless, the delisting didn’t come as a shock as S.Korea is understood for its strict privateness legal guidelines, which prohibit nameless transactions on crypto exchanges.

The MWEB improve on LTC is without doubt one of the essential updates that went stay earlier this 12 months, almost two and half years after it was first proposed. The improve added a number of privateness options and made the LTC blockchain extra scalable.

Gate.io, one other widespread crypto buying and selling platform, additionally ended assist for MWEB Litecoin transactions, claiming nameless transactions should not supported on the platform.

Associated: Crypto exchange Binance seeks critical licenses in Philippines, CEO says

The choice to finish assist for the MWEB operate additionally comes at a time when the main crypto alternate has been marred in controversies. Binance was lately accused of facilitating $2.5 billion worth of illicit transactions by Reuters.

Chagpeng Zhao (CZ), the CEO of Binance refuted all such allegations, pointing to the info launched by blockchain analytics agency Chainalysis.

The US Securities and Trade Fee additionally opened a security violation investigation relating to Binance’s BNB ICO sale in 2017.

The privateness characteristic that was seen as an vital improve has turned out to be a bane for one of many oldest cryptocurrencies. The MWEB improve comes at a time when thregulatory oversight is at its highest and privateness options have grow to be the first goal of regulators across the globe.