The top-notch Korean crypto exchanges, Bithumb, and Upbit raised a red flag about investment in litecoin after the latest update. The new update enables camouflage transactions.
Litecoin announced the integration of privacy-focused technology Mimblewimble which unlocked the “confidential transaction” ability for Litecoin blockchain. Using the new feature, users can send their tokens by keeping transaction details secret.
After the issuance of a warning from Bithumb on Monday, Upbit released its warning statement today.
Both exchanges have cited Korea’s Act on the Reporting and Use of Specific Financial Transaction Information. This act forces crypto exchanges to implement know-your-customer (KYC) and anti-money laundering (AML) procedures.
Furthermore, the new feature also satisfies Bithumb’s “Transaction Support Policy” which states that “transaction support should be terminated if it violates laws, government or financial authorities’ guidelines or is subject to regulation.”
Along with the warning, exchanges have also indicated that it would be “terminated” if the transaction doesn’t stay in compliance with the government policy.
Also Read: S Korean Ruling Party Summons Exchanges to Investigate LUNA Collapse
