According to an announcement made today by Binance on its website, the crypto exchange will end the support of Litecoin (LTC) deposits and withdrawals that use the MimbleWimble Extension Blocks (MWEB) function. The MWEB is a new Litecoin upgrade launched on May 20 this year that provides Litecoin blockchain users to choose to make confidential LTC transactions that do not reveal any transaction details.
According to Binance, any LTC tokens deposited using the MWEB function will not be “received or returned” since Binance is not able to verify the sender’s address. This will result to a direct loss of funds.
As a result, Binance has advised users to avoid making LTC deposits using the MWEB to avoid losing their funds.
Litecoin’s MWEB upgrade
The MimbleWimble Extension Blocks (MWEB) function that allows users to make confidential transactions comes at a when crypto exchanges are increasingly compelled to implement KYC and AML guidelines.
Those using the MWEB can council how many LTC tokens they send or receive and how many LTC tokens are in their MWEB address.
MWEB is simply an opt-in feature that users can choose to use while still continuing to make standard transactions on the main chain. Being an opt-in feature, crypto wallets also have the option of integrating it though they are not obliged to do so to support Litecoin transactions.
Major South Korean exchanges delisted LTC after MWEB upgrade
Binance announcement of not supporting MWEB transactions comes just days after major crypto exchanges from South Korea announced delisting Litecoin due to the MWEB upgrade that conceals transactions.
Interestingly, the delisting by the South Korean crypto exchanges came weeks after they issued warnings similar to what Binance has issued today.
However, it is not clear what Binance will do afterward and the delisting of Litecoin by South Korean crypto exchanges cannot be taken as a measuring stick since South Korea in general is known for its strict privacy laws that forbid anonymous transactions on crypto exchanges.
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