Quick take:

• Litecoin’s MimbleWimble privacy protocol has led some South Korean exchanges to issue warnings about LTC.
• Upbit and Bithumb informed crypto users about the risks associated with the privacy upgrade.
• Both exchanges cited South Korea’s law on the reporting and use of specific financial transaction information.

Bitcoin‘s little brother, commonly known as Litecoin (LTC), caught the eye of South Korean exchanges after the highly anticipated MimbleWimble upgrade was implemented.

The two popular South Korean crypto exchanges of, Bithumb and Upbit, have each released statements warning their user base of the risks associated with the privacy-centric upgrade. The new Litecoin upgrade introduces features that block transactional information.

Both exchanges cited the country’s law on the reporting and use of specific financial transaction information as the basis for the respective notifications. In particular, the law requires all crypto exchanges in South Korea to implement know-your-customer (KYC) procedures and anti-money laundering (AML) processes.

Upbit and Bithumb have already removed privacy coins

It should be noted that South Korean exchanges have had a habit of delisting privacy-focused cryptocurrencies, such as Monero (XMR), Dash (DASH), and ZCash (ZEC). Litecoin’s recent warning for similar reasons could hint at a possible delisting of LTC by both exchanges in the near future.

Such a possibility was explored by the WuBlockchain team, who stated what follows:

South Korean exchanges such as Upbit have issued a warning that MimbleWimble Extension Blocks (MWEB) conducted by the LTC Foundation are making LTC transfer records unrecognizable. This warning may evolve into delisting LTC in the future.

Litecoin recovers $70 support but remains in bearish territory

As for price, Litecoin is now trading at $72 after recovering the crucial $70 support level. However, Bitcoin’s little brother is still trading in bearish territory below the 50-day (white), 100-day (yellow), and 200-day (green) moving averages, as seen in the chart below.

Additionally, from the chart, it can be observed that the daily MFI, RSI, and MACD are all pointing to further buying of Litecoin (LTC), which could lead to a push towards $80. But, Litecoin’s fate in the crypto markets is tied to that of Bitcoin, which is connected to traditional markets currently under the influence of the US Federal Reserve’s mood, raising interest rates to keep the currency under control. inflation.

Therefore, caution is advised when trading Litecoin, more so with the warnings issued by Bithumb and Upbit.