Binance Drops Confidential Litecoin Transactions

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Binance Drops Confidential Litecoin Transactions

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Binance announced that it has halted deposits and withdrawals of Litecoin [LTC] that utilize the MimbleWimble Extension Blocks [MWEB] function, which provides users with an option of sending anonymous LTC transactions without revealing any transaction information.

In the notice issued, Binance cautioned against any further LTC deposits made to the platform through the MWEB function. If done, users might risk losing funds as the exchange would be unable to verify the sender’s address,

“To ensure the security of your funds, please do not deposit LTC through the MWEB function”, it added.

Litecoin is one of the earliest alternative coins [altcoins] that came to being after Bitcoin [BTC]. Created in October 2011, the MimbleWimble upgrade was first developed more than two years ago as part of the Litecoin Improvement Proposal.

Not limited to just scaling privacy features for LTC users, the upgrade also claims to help reduce needless transaction data from the blocks to the minimum using its cut-through feature.

Despite the hype around the LTC’s transactional confidentiality, it met some regulatory roadblocks, particularly with regard to Anti-Money Laundering [AML] and Know Your Customer [KYC] laws.

In fact, it was why leading exchanges in South Korea had removed the coin from their platforms. 

In another different development, Binance has temporarily halted Bitcoin [BTC] withdrawals due to extreme market turbulence, CEO Changpeng Zhao tweeted today.

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Binance Drops Confidential Litecoin Transactions 3

The brutal market condition has sent shockwaves across quarters. On the same day, crypto staking platform Celsius too paused withdrawals and transfers referencing the current mayhem that has engulfed the crypto market.

As reported by TronWeekly, the platform’s token CEL has lost more than half of its value in the ensuing bloodbath.

Binance Under Regulator’s Lens Once Again

Recently, Binance has also been in the midst of regulatory headwinds. CEO CZ Zhao said the Securities and Exchange Commission [SEC] has been “asking questions” about the BNB exchange token but the exchange hasn’t yet been subpoenaed.

The SEC has declined to comment about the presence of a probe, citing policy limitations.

Separately, Binance is also under investigation by the Justice Department, the Commodity Futures Trading Commission [CFTC], and the Internal Revenue Service [IRS].

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